InfoSAWIT, JAKARTA — The performance of the national palm oil industry in August 2025 showed varied dynamics. Based on data from the Gabungan Pengusaha Kelapa Sawit Indonesia (GAPKI), crude palm oil (CPO) and palm kernel oil (PKO) production experienced monthly declines, but export value recorded a significant increase thanks to higher global prices.
According to GAPKI records, CPO production in August 2025 reached 5.06 million tons, down 1.00% compared to July which was 5.11 million tons. PKO production also declined to 481 thousand tons, from 493 thousand tons in the previous month. Nevertheless, on a yearly basis (year on year), total CPO+PKO production from January–August 2025 reached 39.04 million tons, up 13.08% compared to the same period last year which was 34.52 million tons.
Domestic demand continues to increase, especially from the renewable energy sector. Total domestic consumption rose from 2.03 million tons in July to 2.10 million tons in August. The highest surge came from biodiesel use, which increased 5.71% to 1.11 million tons compared to July (1.05 million tons).
“Food consumption also increased to 806 thousand tons from 798 thousand tons in the previous month, or up 1.00%. However, oleochemical consumption slightly declined by -1.08% to 183 thousand tons,” said GAPKI Secretary General Hadi Soegeng in a press conference attended by InfoSAWIT, Tuesday (28/10/2025), in Jakarta.
Palm Oil Exports Decline Slightly, But Transaction Value Increases
From the foreign trade side, total palm oil product exports in August were recorded at 3.47 million tons, down 1.81% from July which reached 3.54 million tons. The largest decline occurred in CPO exports, which plummeted 21.09% to 494 thousand tons from 626 thousand tons in the previous month.
Oleochemical exports also slightly declined to 436 thousand tons from 438 thousand tons (-0.46%). However, several derivative commodities actually experienced increases. Processed palm oil exports increased 1.56% to 2.34 million tons, while processed palm kernel oil products surged sharply 21.34% to 199 thousand tons.
The volume export decline was influenced by decreased shipments to several major countries such as India (-160 thousand tons), Bangladesh (-76 thousand tons), and Pakistan (-48 thousand tons). Conversely, export increases occurred to Malaysia (+103 thousand tons), China (+101 thousand tons), as well as other regions such as Africa (+40 thousand tons), European Union (+32 thousand tons), Russia (+6 thousand tons), and the United States (+4 thousand tons).
Interestingly, although export volume declined, export value actually increased 3.5% from US$ 3.69 billion in July to US$ 3.82 billion in August 2025. Cumulatively, export value from January–August 2025 has reached US$ 24.79 billion, or up 42.88% compared to the same period in 2024 (US$ 17.35 billion).
This increase in export value was driven by higher average global palm oil prices, namely US$ 1,204 per ton CIF Rotterdam, compared to US$ 1,009 per ton in the same period last year.
End-of-August Stock Slightly Declines
With initial August stock of 2.57 million tons, as well as production decline and increased domestic consumption, end-of-August stock was recorded to decline to 2.54 million tons.
This condition depicts Indonesia's resilient palm oil market amid production fluctuations and global market dynamics. The biodiesel and downstream product sectors are still the main engines supporting domestic demand, while the continuously increasing export value shows optimism towards Indonesia's palm oil competitiveness in the world market. (T2)
