Palm Oil Production and Exports Strengthen in October 2025, Biodiesel Fuels Domestic Demand

Palm Oil Magazine
Stronger biodiesel absorption lifted domestic demand, while higher production and processed palm oil shipments pushed Indonesia’s palm oil exports and revenues higher in October 2025. Photo by: Palm Oil Magazine

PALMOILMAGAZINE, JAKARTA — Indonesia’s palm oil industry regained momentum in October 2025, supported by rising output, stronger exports, and robust domestic absorption led by biodiesel. Data from the Indonesian Palm Oil Association (GAPKI) show crude palm oil (CPO) production reached 4.352 million tons, up 10.68% from 3.932 million tons in September. Palm kernel oil (PKO) output also increased, climbing from 366,000 tons to 405,000 tons.

Cumulatively through October 2025, combined CPO and PKO production totaled 48.092 million tons, marking a 9.85% year-on-year (YoY) increase from 43.780 million tons in the same period of 2024. The figures underscore solid upstream performance throughout the year.

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On the domestic front, consumption continued to rise. Total domestic absorption in October reached 2.227 million tons, up from 2.053 million tons in September. Biodiesel accounted for the largest increase, absorbing 1.200 million tons, a 12.15% jump from 1.070 million tons a month earlier.

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“Food consumption also increased to 835,000 tons from 793,000 tons, up 5.30%, while oleochemical use remained relatively stable, edging up 1.05% to 192,000 tons,” said GAPKI Executive Director Mukti Sardjono in a statement received by Palmoilmagazine.com on Wednesday (24/12/2025).

After weakening in September, palm oil exports rebounded strongly in October. Total exports reached 2.796 million tons, surging 27.09% from 2.200 million tons the previous month. The sharpest growth came from processed palm oil exports, which rose 29.88% to 2.043 million tons from 1.573 million tons.

Oleochemical exports increased 14.22% to 506,000 tons, while CPO exports jumped 51.65% to 138,000 tons. Exports of processed palm kernel products also climbed 16.13% to 108,000 tons. From January to October 2025, cumulative palm oil product exports reached 27.691 million tons, up 11.49% YoY from 24.837 million tons a year earlier.

By destination, the largest export increases in October were recorded to China (+203,000 tons), followed by Pakistan (+131,000 tons), Africa (+52,000 tons), the European Union (EU-27) (+50,000 tons), India (+38,000 tons), Bangladesh (+32,000 tons), and the Middle East (+28,000 tons). Exports to the United States and Malaysia declined by 3,200 tons and 300 tons, respectively.

In value terms, exports rose sharply alongside volumes. October export earnings reached USD 3.292 billion, up 30.22% from USD 2.528 billion in September. Cumulatively through October 2025, export values totaled USD 30.605 billion, a 36.19% YoY increase from USD 22.472 billion in the same period last year.

The gains were also supported by higher prices. Average CPO prices for January–October 2025 stood at USD 1,217 per ton CIF Rotterdam, compared with USD 1,038 per ton in the corresponding period of 2024.

With opening stocks in October at 2.592 million tons, combined with 4.757 million tons of CPO and PKO production and offset by domestic consumption and exports, end-October stocks fell to 2.333 million tons—reflecting strong domestic and global demand for Indonesia’s palm oil products. (P3)

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