PALMOILMAGAZINE, JAKARTA – Indonesia’s palm oil inventories continued to tighten at the end of April 2026 as rising domestic demand and robust export shipments outpaced supply growth, reinforcing expectations that crude palm oil (CPO) prices will remain resilient in the near term.
According to the Indonesian Palm Oil Association (GAPKI), domestic palm oil consumption reached 2.141 million tonnes in April, up 1.23% from 2.115 million tonnes recorded in March.
The increase was primarily driven by the biodiesel sector, where consumption climbed 7.67% to 1.137 million tonnes, compared with 1.056 million tonnes a month earlier. Demand from the oleochemical industry also strengthened, rising 6.79% from 162,000 tonnes to 173,000 tonnes.
In contrast, palm oil consumption for food products declined 7.36% to 831,000 tonnes, down from 897,000 tonnes in March.
“During the January-April 2026 period, cumulative domestic consumption reached 8.666 million tonnes, representing a 6.06% increase compared with 8.171 million tonnes in the corresponding period of 2025,” said Mukti Sardjono, Executive Director of GAPKI, in an official statement received by Palmoilmagazine.com on Monday (June 29).
The combined effect of higher domestic consumption and stronger exports continued to reduce Indonesia’s palm oil inventories.
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Starting with an opening stock of 2.568 million tonnes in April and adding production of 4.903 million tonnes, while deducting domestic consumption of 2.141 million tonnes and exports totaling 2.777 million tonnes, Indonesia ended the month with 2.558 million tonnes in palm oil stocks, slightly below the 2.568 million tonnes recorded at the end of March.
Although the decline was relatively modest, it reflects strong absorption from both domestic and international markets, underscoring healthy demand for Indonesian palm oil.
The report also highlighted continued strength in global palm oil prices, providing additional support to the country’s palm oil industry.
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During the first four months of 2026, the average CIF Rotterdam CPO price reached US$1,408 per tonne, significantly higher than the US$1,211 per tonne average recorded during the same period last year.
The combination of elevated prices, growing domestic demand, and gradually tightening inventories is expected to keep CPO prices well supported in the short term, provided there is no significant surge in production or a slowdown in global demand.
Indonesia’s export performance also improved substantially over the January-April period. The value of palm oil exports rose to US$13.04 billion, an increase of 20.52% from US$10.82 billion in the same period of 2025, supported by higher export volumes and stronger average global palm oil prices.
The latest figures suggest that Indonesia’s palm oil industry continues to benefit from a favorable supply-demand balance, with expanding domestic biodiesel consumption and solid export demand helping sustain market fundamentals despite lower inventory levels. (P2)
