InfoSAWIT, JAKARTA — The national palm oil industry is once again facing challenges in the export market. Recent data released by the Indonesian Palm Oil Entrepreneurs Association (GAPKI) indicates that palm oil exports in April 2025 experienced a significant decline in both volume and value.
GAPKI's Executive Director, Mukti Sardjono, revealed that total palm oil exports from Indonesia in April reached only 1.779 million tons, a drastic drop of 39.2% compared to March, which recorded 2.876 million tons.
“The largest decline occurred in the export of processed palm oil products, which only reached 1.241 million tons, down 41.7% from the previous month’s figure of 2.128 million tons,” explained Mukti in an official statement written by InfoSAWIT on Thursday (June 26, 2025).
Additionally, oleochemical exports also saw a correction to 368,000 tons, down 9.6% from March's 407,000 tons.
By destination country, the largest export declines in April compared to March occurred in the European Union (-156,000 tons), India (-155,000 tons), the United States (-113,000 tons), Pakistan (-109,000 tons), and Bangladesh (-86,000 tons).
On a year-to-date basis, total palm oil exports from January to April 2025 reached 9.416 million tons, down 3.08% compared to the same period last year, which was 9.715 million tons. The most notable decline occurred in exports to India, which plummeted by 1.055 million tons (-68%), followed by the European Union (-818,000 tons/-62%), China (-746,000 tons/-62%), and Pakistan (-385,000 tons/-42%).
In terms of value, exports in April were recorded at US$2.069 billion, also sharply down 37% compared to March's US$3.283 billion. However, Mukti noted that the cumulative export value from January to April 2025 shows a positive trend.
“The export value from January to April increased from US$8.307 billion in 2024 to US$10.818 billion in 2025, growing approximately 30.2%. This is driven by an increase in the average price of CPO products,” he stated.
Throughout the first four months of 2025, the average price of CPO in the international market (CIF Rotterdam) was recorded at US$1,183 per ton, higher than the average for the same period in 2024, which was only US$1,001 per ton.
Despite the export value still showing year-on-year growth, the declining volume trend in April raises serious concerns. The weakening demand from key markets such as India, the European Union, and China may signal the need for new penetration strategies, as well as strengthening trade diplomacy to maintain the competitiveness of Indonesian palm oil products in the global market. (T2)
