Higher global palm oil prices boosted Indonesia’s CPO and derivative exports by 7.32% in the first half of 2026, reinforcing the commodity’s role as a major contributor to the country’s non-oil export growth.
PALMOILMAGAZINE, JAKARTA — Indonesia’s crude palm oil (CPO) and downstream palm product exports continued to play a pivotal role in the country’s trade performance during the first half of 2026. Data released by Statistics Indonesia (BPS) showed that the export value of CPO and its derivatives increased 7.32% year-on-year in January–June 2026, supported by stronger global palm oil prices.
Ateng Hartono, Deputy for Distribution and Services Statistics at BPS, said higher international CPO prices were among the key drivers behind Indonesia’s stronger export performance during the first six months of the year.
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“Higher global crude palm oil (CPO) prices have become one of the key factors driving Indonesia’s export growth. During January–June 2026, the export value of CPO and its derivatives rose 7.32% compared to the same period last year,” Ateng said in the BPS Official Statistics Release (BRS) issued on Monday (Aug. 3, 2026).
The broader agriculture, forestry, and fisheries sector also posted positive results. In June 2026 alone, exports from the sector reached US$485.8 million, while cumulative exports in the first half of the year totaled US$2.59 billion, up 1.84% from the corresponding period in 2025.
Indonesia’s total exports reached US$140.81 billion during January–June 2026, representing a 4.13% year-on-year increase. Meanwhile, non-oil and gas exports rose 4.90% to US$134.58 billion, with animal and vegetable fats and oils (HS15)—dominated by CPO and its downstream products—remaining among the largest contributors to export growth.
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In June alone, Indonesia recorded total exports of US$25.46 billion, an increase of 8.84% from a year earlier. Exports of HS15 products expanded at an even faster pace, rising 10.45%, reflecting the continued strength of international CPO prices.
BPS data also underscored palm oil’s strategic role in Indonesia’s export sector. Together with iron and steel and coal, CPO and its downstream products accounted for approximately 28.30% of the country’s total non-oil and gas exports during the first half of 2026.
Among the three major export commodities, palm oil recorded the strongest growth, with export value increasing 7.32%, while iron and steel exports declined 0.16% and coal exports rose only 0.63%.
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Minister of Agriculture Andi Amran Sulaiman reiterated that Indonesia must continue strengthening agricultural exports through downstream industrialization to create greater added value and improve farmers’ welfare.
According to Amran, Indonesia’s status as the world’s largest palm oil producer provides significant opportunities to increase export earnings by expanding its downstream processing industry.
“Indonesia is the world’s largest palm oil producer. Together with Malaysia, the two countries account for around 80% of global CPO production. Therefore, downstream palm oil development is one of Indonesia’s strategic tools to enhance export competitiveness and create greater added value,” he said.
Amran added that the government will continue promoting downstream investment to ensure future export growth is driven not only by higher volumes but also by greater value-added from palm-based products. (P3)
