InfoSAWIT, JAKARTA – The national palm oil industry's performance in July 2025 showed an increase in production, but on the other hand, domestic consumption and exports experienced a decline.

The combined production of crude palm oil (CPO) and palm kernel oil (PKO) in July was recorded at 5.606 million tons. CPO production increased by 6% to 5.113 million tons from 4.823 million tons in June, while PKO production also grew by 6% to 493 thousand tons from 465 thousand tons. On a year-on-year basis, total production up to July 2025 reached 33.495 million tons, or 11.11% higher than the same period last year, which was 30.146 million tons.

Despite the increase in production, domestic consumption slightly slowed. Oleochemical consumption fell by 3.65% to 185 thousand tons, biodiesel dropped by 2.69% to 1.051 million tons, and food consumption saw a slight decrease of 0.25% to 798 thousand tons.

In terms of exports, the volume of palm oil products in July was 3.537 million tons, down 1.92% compared to the previous month's 3.606 million tons. The largest decline was in refined palm oil exports, which fell sharply by 11.26% to 2.307 million tons. "Exports of refined palm kernel oil also weakened by 1.70% to 164 thousand tons. In contrast, CPO exports surged by 49.75% to 626 thousand tons, and oleochemical exports rose by 4.33% to 438 thousand tons," said Mukti Sardjono, Executive Director of the Indonesian Palm Oil Association (GAPKI), in an official statement received by InfoSAWIT on Thursday (9/25/2025).

Regarding destination countries, exports to India increased by 126 thousand tons, Pakistan by 118 thousand tons, and Bangladesh by 26 thousand tons. However, exports to China decreased significantly by 165 thousand tons, followed by Africa (-105 thousand tons), the European Union (-53 thousand tons), Russia (-51 thousand tons), Malaysia (-38 thousand tons), and the United States (-7 thousand tons).

In terms of value, palm oil exports in July actually rose by 1.46% to US$3.69 billion from US$3.64 billion in June. Up to July 2025, the export value was recorded at US$20.97 billion, a jump of 41.59% compared to the same period in 2024, which was US$14.81 billion. This increase in export value was driven by an average palm oil price from January to July 2025 of US$1,191/ton CIF Rotterdam, which was higher than last year's average of US$1,003/ton.

With an initial stock of 2.53 million tons in July, an additional production of 5.606 million tons, domestic consumption of 2.034 million tons, and exports of 3.537 million tons, the final stock in July increased to 2.568 million tons. (T2)