PALMOILMAGAZINE, JAKARTA – Indonesia’s crude palm oil (CPO) production saw a modest month-on-month increase in April 2025, driven by seasonal factors. However, domestic consumption moved in the opposite direction, recording a decline.
According to data released by the Indonesian Palm Oil Association (GAPKI), CPO production in April reached 4.479 million tons, up 2% from March’s 4.391 million tons. Palm kernel oil (PKO) production also rose to 425 thousand tons from 417 thousand tons the previous month.
“On a year-on-year basis, combined production of CPO and PKO from January to April 2025 reached 18.039 million tons, marking a 0.85% increase from 17.887 million tons during the same period last year,” said GAPKI Executive Director Mukti Sardjono, as quoted by Palmoilmagazine.com on Wednesday (June 25, 2025).
In contrast, domestic consumption declined. Total consumption in April dropped to 2.100 million tons from 2.168 million tons in March. Consumption for food fell by 2.02% to 871 thousand tons, down from 889 thousand tons. Oleochemical consumption inched up by 0.32% to 183 thousand tons from 182 thousand tons, while biodiesel usage declined significantly by 4.58%, falling to 1.046 million tons from 1.097 million tons.
With an opening stock of 2.017 million tons at the beginning of April, the total supply from CPO and PKO production reached 4.904 million tons. As domestic consumption fell to 2.100 million tons and exports also dropped to 1.779 million tons, the end-of-month stock rose to 3.046 million tons.
This stock buildup signals growing pressure on the demand side, especially as domestic consumption has yet to keep pace with rising production. The data serves as a warning for industry players about a potential oversupply if consumption trends do not improve soon.
To mitigate this risk, both the government and private sector are urged to strengthen export markets and promote diversification of palm-based products to optimize absorption amid global market fluctuations. (P2)
