InfoSAWIT, JAKARTA – Indonesia's palm oil production declined in May 2026 compared with the previous month, but a sharper drop in exports and domestic consumption pushed national inventories to their highest level this year, according to the Indonesian Palm Oil Association (GAPKI).
In an official statement received by InfoSAWIT on Wednesday (July 15), GAPKI Executive Director Mukti Sardjono said that although monthly production of crude palm oil (CPO) and palm kernel oil (PKO) weakened, the industry's overall performance during the first five months of 2026 remained stronger than the same period last year.
GAPKI reported that CPO production fell to 4.165 million tonnes in May, down 7.01% from 4.479 million tonnes in April. Production of palm kernel oil (PKO) also declined, dropping from 424,000 tonnes to 387,000 tonnes.
As a result, combined CPO and PKO production reached 4.552 million tonnes in May, representing a 7.16% month-on-month decline from 4.903 million tonnes recorded in April.
Despite the monthly slowdown, cumulative output remained positive. Between January and May 2026, Indonesia produced 25.013 million tonnes of CPO and PKO, an increase of 10.68% compared with 22.600 million tonnes during the same period in 2025.
Domestic palm oil consumption also eased in May, totaling 2.078 million tonnes, down 2.98% from 2.141 million tonnes in April.
The decline was largely driven by lower biodiesel demand, which fell to 1.035 million tonnes from 1.137 million tonnes a month earlier. In contrast, palm oil consumption for the food sector edged up to 856,000 tonnes from 831,000 tonnes, while oleochemical consumption increased to 187,000 tonnes from 173,000 tonnes.
For the January–May period, cumulative domestic consumption reached 10.743 million tonnes, up 5.33% from 10.200 million tonnes in the corresponding period of 2025.
GAPKI said that with opening stocks of 2.068 million tonnes, combined production of 25.013 million tonnes, domestic consumption of 10.743 million tonnes, exports totaling 13.320 million tonnes, and imports of 24,000 tonnes, Indonesia's palm oil inventories climbed to 3.042 million tonnes at the end of May.
The data indicate that while production softened during May, slower demand growth—particularly weaker exports and lower domestic consumption—allowed inventories to build.
The rising stock level is expected to remain a key indicator for market participants as they monitor the balance between supply and demand in both Indonesia and the global palm oil market in the months ahead. (T2)
