PALMOILMAGAZINE, JAKARTA – The production of crude palm oil (CPO) and palm kernel oil (PKO) in January 2025 saw a decrease compared to the previous month. According to the latest data, total CPO production reached 3.828 million tons, while PKO production amounted to 356 thousand tons, bringing the combined total for CPO and PKO to 4.184 million tons. This figure represents a decline of 53 thousand tons, or 1.25%, from December 2024’s production of 4.237 million tons.
Referring to a report from the Indonesian Palm Oil Entrepreneurs Association (GAPKI), the drop in production was more significant when compared to January 2024, showing a 9.7% decrease from the previous total of 4.634 million tons.
“At the same time, domestic palm oil consumption in January 2025 also saw a sharp decline. Total consumption reached 1.871 million tons, a decrease of 14.45% compared to December 2024, when consumption stood at 2.187 million tons,” said GAPKI’s Executive Director, Mukti Sardjono, in a statement received by Palmoilmagazine.com on Friday (March 28, 2025).
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The most significant drop occurred in the consumption of palm oil for the food sector, which reached only 758 thousand tons, down 21.12% from the previous month’s consumption of 961 thousand tons. Biodiesel consumption also decreased by 12.44%, from 1.046 million tons in December 2024 to 916 thousand tons in January 2025.
On the other hand, palm oil consumption for the oleochemical industry increased by 9.44%, rising from 180 thousand tons in the previous month to 197 thousand tons.
The decline in both production and consumption may affect the dynamics of the palm oil market in the coming months. Weather factors, global demand, and domestic policies will be key variables in determining the direction of the palm oil industry this year. (P2)
