PALMOILMAGAZINE, JAKARTA — Indonesia’s palm oil industry showed mixed performance in August 2025, with a slight drop in crude palm oil (CPO) and palm kernel oil (PKO) production, while export value increased thanks to stronger global prices, according to data from the Indonesian Palm Oil Association (GAPKI).
CPO production reached 5.06 million tons, down 1.00% from 5.11 million tons in July. PKO output also declined from 493,000 tons to 481,000 tons. However, on a year-to-date basis, total CPO and PKO production from January to August 2025 rose 13.08%, reaching 39.04 million tons, compared to 34.52 million tons in the same period last year.
Domestic demand continued to strengthen, particularly from the renewable energy sector. Total domestic consumption increased from 2.03 million tons in July to 2.10 million tons in August, with the sharpest rise seen in biodiesel use — up 5.71% to 1.11 million tons.
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“Food consumption also rose by 1.00% to 806,000 tons, while oleochemical use fell slightly by 1.08% to 183,000 tons,” said GAPKI Secretary General Hadi Soegeng during a press conference attended by Palmoilmagazine.com on Tuesday (October 28, 2025) in Jakarta.
Export Volume Declines, But Revenue Climbs
Indonesia exported 3.47 million tons of palm oil products in August, a 1.81% drop from 3.54 million tons in July. The biggest decline came from CPO exports, which fell 21.09% to 494,000 tons. Oleochemical exports also edged down 0.46% to 436,000 tons.
On the other hand, several processed product categories performed better. Refined palm oil exports rose 1.56% to 2.34 million tons, while refined PKO exports jumped 21.34% to 199,000 tons.
Export declines were mainly due to lower shipments to India (-160,000 tons), Bangladesh (-76,000 tons), and Pakistan (-48,000 tons). Meanwhile, exports to Malaysia (+103,000 tons), China (+101,000 tons), Africa (+40,000 tons), the European Union (+32,000 tons), Russia (+6,000 tons), and the United States (+4,000 tons) increased.
Interestingly, despite the dip in export volume, the total export value climbed 3.5%, from US$3.69 billion in July to US$3.82 billion in August 2025. Cumulatively, January–August 2025 export earnings reached US$24.79 billion, up 42.88% from US$17.35 billion in the same period last year.
The increase was driven by a higher average global palm oil price, which rose to US$1,204 per ton CIF Rotterdam, compared with US$1,009 per ton a year earlier.
Lower End-Month Stocks
With opening stocks of 2.57 million tons, coupled with lower production and rising domestic consumption, end-month stocks slightly declined to 2.54 million tons.
These figures underscore the resilience of Indonesia’s palm oil sector amid production fluctuations and shifting global market trends. The biodiesel program and downstream processing industries remain the backbone of domestic demand, while increasing export revenues continue to highlight Indonesia’s strong competitiveness in global palm oil trade. (P2)
