PALMOILMAGAZINE, JAKARTA – Indonesia’s palm oil production declined in May 2026 compared with the previous month. However, a sharper drop in domestic consumption and exports pushed the country’s palm oil inventories higher, reaching 3.042 million tons at the end of May, according to the Indonesian Palm Oil Association (GAPKI).
In an official statement received by Palmoilmagazine.com on Wednesday (July 15), GAPKI Executive Director Mukti Sardjono said that while monthly production of crude palm oil (CPO) and palm kernel oil (PKO) weakened, the industry’s overall performance during the first five months of 2026 remained stronger than in the same period last year.
GAPKI reported that CPO production totaled 4.165 million tons in May, down 7.01% from 4.479 million tons in April. Meanwhile, PKO production declined to 387,000 tons from 424,000 tons a month earlier.
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As a result, combined CPO and PKO production reached 4.552 million tons in May, representing a 7.16% month-on-month decline from 4.903 million tons recorded in April.
Despite the monthly slowdown, cumulative production continued to show solid growth. During January–May 2026, total CPO and PKO output reached 25.013 million tons, an increase of 10.68% compared with 22.600 million tons in the corresponding period of 2025.
On the domestic demand side, Indonesia’s palm oil consumption fell to 2.078 million tons in May, down 2.98% from 2.141 million tons in April.
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The decline was mainly driven by lower biodiesel demand, which eased to 1.035 million tons from 1.137 million tons in April. In contrast, palm oil consumption for the food sector edged up to 856,000 tons from 831,000 tons, while oleochemical demand increased to 187,000 tons from 173,000 tons.
For the first five months of the year, cumulative domestic consumption reached 10.743 million tons, up 5.33% from 10.200 million tons during the same period in 2025.
GAPKI noted that with opening stocks of 2.068 million tons, total production of 25.013 million tons, domestic consumption of 10.743 million tons, exports totaling 13.320 million tons, and imports of 24,000 tons, Indonesia’s palm oil inventory increased to 3.042 million tons by the end of May 2026.
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The figures indicate that although production softened in May, stronger year-to-date output combined with slower absorption through both domestic consumption and exports led to a build-up in national palm oil stocks. Market participants are expected to closely monitor inventory levels as a key indicator of future supply-demand dynamics in both domestic and global CPO markets. (P2)
