JAKARTA, InfoSAWIT – National crude palm oil (CPO) production experienced a significant decline in May 2025. Data from the Indonesian Palm Oil Entrepreneurs Association (GAPKI) indicated that CPO production fell by 7.01 percent to 4.165 million tons from 4.479 million tons in April. A decrease was also observed in palm kernel oil (PKO) production, which dropped to 396,000 tons from 425,000 tons.

Despite the monthly decline, the total CPO and PKO production year-on-year (YoY) until May 2025 reached 22.6 million tons, reflecting a 2.08 percent increase compared to the same period in 2024, which was 22.14 million tons.

On the domestic consumption front, GAPKI reported a decrease from 2.1 million tons in April to 2.029 million tons in May. The food sector accounted for the largest share of the decline, dropping by 7.81 percent to 803,000 tons from 871,000 tons.

Meanwhile, consumption for the oleochemical sector saw a slight increase of 2.19 percent to 187,000 tons from 183,000 tons the previous month. Usage for biodiesel recorded a slight decrease of 0.67 percent to 1.039 million tons from 1.046 million tons.

“With an initial stock of 3.046 million tons at the beginning of May, and total CPO and PKO production reaching 4.561 million tons, along with domestic consumption declining to 2.029 million tons, exports increased to 2.664 million tons. Consequently, the ending stock for May was recorded at 2.916 million tons,” explained GAPKI's Executive Director, Mukti Sardjono, in an official statement received by InfoSAWIT on Friday, July 25, 2025.

This situation reflects the dynamics of the national palm oil market, which is still influenced by various factors, including global demand and fluctuations in domestic consumption. (T2)