InfoSAWIT, JAKARTA – Indonesia’s palm oil industry recorded strong performance throughout 2025, with increases in crude palm oil (CPO) and palm kernel oil (PKO) production alongside rising exports and domestic consumption, particularly from the biodiesel sector.

According to the Executive Director of the Indonesian Palm Oil Association (GAPKI), Mukti Sardjono, CPO production in 2025 reached 51.660 million tons, an increase of 7.26% compared with 48.164 million tons in 2024.

PKO production also rose by 6.41% to 4.893 million tons from 4.598 million tons in 2024.

“As a result, total CPO and PKO production in 2025 reached 56.553 million tons, up 7.18% from 52.762 million tons in 2024,” Mukti said in a statement received by InfoSAWIT on Monday (16/3/2026).

Domestic Consumption Increases, Biodiesel Leads Growth

Domestic palm oil consumption also increased in 2025, reaching 24.772 million tons, up 3.82% from 23.859 million tons in 2024.

The largest increase came from biodiesel consumption, which rose to 12.704 million tons, up 10.97% from 11.447 million tons the previous year.

According to Mukti, the increase was driven by the expansion of Indonesia’s biodiesel blending mandate from B35 to B40.

Oleochemical consumption also rose slightly from 2.207 million tons to 2.234 million tons, an increase of 1.22%.

However, consumption in the food sector declined to 9.834 million tons from 10.205 million tons the previous year, representing a drop of 3.64%.

Palm Oil Exports Grow 9.5%

Indonesia’s palm oil exports also increased significantly in 2025, reaching 32.343 million tons, up 9.51% compared with 29.535 million tons in 2024.

The largest growth occurred in processed palm oil exports, which increased to 22.727 million tons from 20.451 million tons.

Exports of processed palm kernel oil rose to 1.560 million tons from 1.262 million tons, while oleochemical exports increased to 5.076 million tons from 4.796 million tons. Meanwhile, CPO exports rose slightly to 2.964 million tons from 2.916 million tons.

By destination, exports to Africa increased by 991,000 tons, followed by China with an increase of 644,000 tons, Malaysia 516,000 tons, Bangladesh 503,000 tons, and Pakistan 214,000 tons.

However, exports to several major markets declined, including India (down 859,000 tons), the European Union (EU-27) down 97,000 tons, and the United States down 15,000 tons.

Alongside rising export volumes and higher global prices, Indonesia’s palm oil export value also surged in 2025 to US$35.87 billion, equivalent to around Rp590 trillion.

This represented a 29.23% increase compared with export value in 2024, which stood at US$27.76 billion or approximately Rp440 trillion.

The increase was supported by the higher average CIF Rotterdam price in 2025, which reached US$1,221 per ton compared with US$1,084 per ton in 2024.

With these production, consumption, and export levels, the year-end stock of CPO and PKO in 2025 was recorded at 2.068 million tons, down 19.79% from the 2024 year-end stock of 2.577 million tons. (T2)