PALMOILMAGAZINE, JAKARTA — Indonesia’s palm oil industry delivered a robust performance in 2025, marked by higher production, expanding exports, and stronger domestic consumption—particularly from the biodiesel sector.
According to Executive Director of the Indonesian Palm Oil Association, Mukti Sardjono, crude palm oil (CPO) production reached 51.66 million tons in 2025, representing a 7.26% increase from 48.16 million tons in 2024.
Palm kernel oil (PKO) production also rose by 6.41% to 4.89 million tons, up from 4.60 million tons a year earlier. In total, combined CPO and PKO output reached 56.55 million tons, growing 7.18% compared to 52.76 million tons in 2024.
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Domestic Demand Strengthens, Led by Biodiesel
Domestic consumption of palm oil increased to 24.77 million tons in 2025, up 3.82% from 23.86 million tons in the previous year. The most significant growth came from the biodiesel segment, which surged 10.97% to 12.70 million tons, compared to 11.45 million tons in 2024.
Mukti attributed the rise to the expansion of Indonesia’s biodiesel mandate from B35 to B40, which significantly boosted demand for palm-based fuel.
Meanwhile, oleochemical consumption saw a modest increase of 1.22%, reaching 2.23 million tons. In contrast, palm oil use in the food sector declined by 3.64% to 9.83 million tons, down from 10.21 million tons the previous year.
Exports Climb 9.5%, Africa and China Lead Growth
Indonesia’s palm oil exports also recorded strong growth in global markets. Total exports reached 32.34 million tons in 2025, up 9.51% from 29.54 million tons in 2024.
The largest increase came from refined palm oil products, which rose to 22.73 million tons from 20.45 million tons. Exports of processed palm kernel oil increased to 1.56 million tons, while oleochemical exports climbed to 5.08 million tons. Crude palm oil exports edged up slightly to 2.96 million tons.
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By destination, exports to Africa saw the biggest jump, increasing by 991,000 tons. Other notable gains were recorded in China (+644,000 tons), Malaysia (+516,000 tons), Bangladesh (+503,000 tons), and Pakistan (+214,000 tons).
However, shipments to key markets declined, including India (down 859,000 tons), the European Union (down 97,000 tons), and the United States (down 15,000 tons).
Export Value Jumps on Higher Prices
Supported by both higher volumes and stronger global prices, Indonesia’s palm oil export value surged to $35.87 billion (around Rp590 trillion) in 2025—an increase of 29.23% from $27.76 billion (approximately Rp440 trillion) in 2024.
The rise was also driven by higher international prices, with the average CIF Rotterdam price reaching $1,221 per ton in 2025, compared to $1,084 per ton the previous year.
With strong demand across domestic and export markets, ending stocks of CPO and PKO fell to 2.07 million tons in 2025, down 19.79% from 2.58 million tons in 2024—indicating robust market absorption of Indonesia’s palm oil products. (P2)
