InfoSAWIT, JAKARTA – The production of crude palm oil (CPO) and palm kernel oil (PKO) in January 2025 has decreased compared to the previous month. According to the latest data, total CPO production reached 3.828 million tons and PKO amounted to 356 thousand tons, bringing the combined total of CPO and PKO production to 4.184 million tons. This figure represents a decline of 53 thousand tons or 1.25% from the production in December 2024, which was 4.237 million tons.

Referring to a report from the Indonesian Palm Oil Entrepreneurs Association (GAPKI), the decline in production is more significant when compared to January 2024, with a decrease of 9.7% from the previous total production of 4.634 million tons.

"Meanwhile, domestic consumption of palm oil in January 2025 also experienced a sharp decline. Total consumption reached 1.871 million tons, down 14.45% compared to December 2024's consumption of 2.187 million tons," said GAPKI Executive Director Mukti Sardjono in an official statement received by InfoSAWIT on Friday (March 28, 2025).

The largest decrease occurred in the consumption of palm oil for the food sector, which only reached 758 thousand tons, down 21.12% from the previous month's consumption of 961 thousand tons. Consumption for biodiesel also saw a decline of 12.44%, from 1.046 million tons in December 2024 to 916 thousand tons in January 2025.

On the other hand, consumption of palm oil for the oleochemical industry actually increased by 9.44%, from 180 thousand tons in the previous month to 197 thousand tons.

This decline in production and consumption could potentially affect the dynamics of the palm oil market in the coming months. Weather factors, global demand, and domestic policies will be key variables in determining the direction of the palm oil industry this year. (T2)