PALMOILMAGAZINE, JAKARTA — Indonesia’s palm oil sector weakened across nearly all key indicators in September 2025, reflecting simultaneous pressure on production, domestic consumption, and exports.
Fresh data show crude palm oil (CPO) production fell sharply to 3.93 million tons, down 22.32% from August’s 5.06 million tons. Palm kernel oil (PKO) output also dropped to 366,000 tons, from 481,000 tons previously.
“Even so, the year-to-date performance remains solid. From January to September 2025, combined CPO+PKO production reached 43.34 million tons, up 11.3% YoY, outperforming the same period in 2024,” said Mukti Sardjono, Executive Director of the Indonesian Palm Oil Association (GAPKI), in a statement received by Palmoilmagazine.com on Friday (28/11/2025).
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On the domestic front, Indonesian consumption slipped slightly to 2.05 million tons, compared to 2.10 million tons in August. The steepest decline came from the biodiesel segment, down 3.69% to 1.07 million tons. Food use dipped modestly to 793,000 tons, while oleochemical demand rose 3.83% to 190,000 tons.
The hardest hit was the export sector. Total outbound shipments plunged 36.65% to 2.20 million tons, from 3.47 million tons in August. Refined palm oil exports slid to 1.57 million tons, while CPO exports collapsed 81.58% to just 91,000 tons. Oleochemical exports fell by more than half to 93,000 tons.
Nearly all major destinations cut purchases. India recorded the biggest drop—down 409,000 tons—followed by China, Malaysia, Africa, Pakistan, the United States, and the European Union. Only Russia booked a small increase of around 18,000 tons.
Shrinking export volumes dragged down shipment value. Export earnings for September fell 33.80%, to US$ 2.53 billion, from US$ 3.82 billion in August. Still, cumulative performance remains strong: January–September export value has reached US$ 27.31 billion, soaring nearly 40% YoY.
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“This growth is supported by stronger international prices, averaging US$ 1,210/ton Cif Rotterdam, compared with US$ 1,020/ton in the same period last year,” Mukti said.
With production weakening and exports plunging, end-September stocks rose to 2.59 million tons, up from 2.54 million tons at the start of the month. The higher inventory signals a global market that is holding back demand amid a domestic slowdown.
Market attention now turns to the fourth quarter—typically a period of seasonal demand recovery toward year-end—though price volatility and broader global trends will remain decisive factors. (P2)
