PALMOILMAGAZINE, JAKARTA – Indonesia’s palm oil industry recorded higher output in July 2025, but domestic consumption and export volumes showed a downward trend.
Combined production of crude palm oil (CPO) and palm kernel oil (PKO) reached 5.606 million tons in July. CPO production rose 6% to 5.113 million tons from 4.823 million tons in June, while PKO output also grew 6% to 493 thousand tons from 465 thousand tons. On a year-on-year (YoY) basis, total production for January–July 2025 stood at 33.495 million tons, up 11.11% from 30.146 million tons in the same period last year.
Despite higher output, domestic consumption slowed slightly. Oleochemical consumption fell 3.65% to 185 thousand tons, biodiesel dropped 2.69% to 1.051 million tons, and food use slipped 0.25% to 798 thousand tons.
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Exports also softened, with July shipments totaling 3.537 million tons, down 1.92% from 3.606 million tons in June. The largest decline came from refined palm oil exports, which slumped 11.26% to 2.307 million tons. Exports of processed palm kernel oil also dipped 1.70% to 164 thousand tons. Conversely, CPO exports surged 49.75% to 626 thousand tons, while oleochemical exports grew 4.33% to 438 thousand tons.
“Exports of refined palm oil fell sharply, while CPO exports climbed significantly. We also saw growth in oleochemical shipments,” said Mukti Sardjono, Executive Director of the Indonesian Palm Oil Association (GAPKI), in an official statement received by Palmoilmagazine.comon Thursday (Sept 25, 2025).
By destination, exports to India (+126 thousand tons), Pakistan (+118 thousand tons), and Bangladesh (+26 thousand tons) increased, while shipments to China (-165 thousand tons), Africa (-105 thousand tons), the European Union (-53 thousand tons), Russia (-51 thousand tons), Malaysia (-38 thousand tons), and the United States (-7 thousand tons) fell.
In value terms, however, July palm oil exports edged up 1.46% to US$3.69 billion, compared to US$3.64 billion in June. Cumulatively, January–July 2025 export value reached US$20.97 billion, soaring 41.59% from US$14.81 billion in the same period last year. The increase was driven by higher average palm oil prices, at US$1,191/ton CIF Rotterdam, compared to US$1,003/ton in 2024.
With beginning stocks of 2.53 million tons in July, additional output of 5.606 million tons, domestic consumption of 2.034 million tons, and exports of 3.537 million tons, ending stocks rose slightly to 2.568 million tons. (P2)
