Indonesia’s palm oil industry showed a strong performance throughout 2025, with both domestic consumption and exports rising significantly, data from the Indonesian Palm Oil Association (GAPKI) revealed. From January to September 2025, domestic consumption of palm oil reached 18.5 million tons, marking a 5.13% increase compared to the same period in 2024. This increase was largely driven by robust demand from the biodiesel sector, which accounted for approximately 9.41 million tons (51%) of total use. Other key contributors to domestic demand included the food sector with 7.37 million tons (40%) and the oleochemical industry with 1.67 million tons (9%), reflecting strong industrial usage and ongoing government support for renewable energy initiatives.
In addition to rising domestic demand, Indonesia’s palm oil exports also saw substantial growth. Between January and September 2025, export volumes climbed by around 13%, increasing from 21.94 million tons in the same period of 2024 to 24.89 million tons in 2025. This expansion in export volume translated into significant gains in export value, with total earnings reaching USD 27.31 billion, up nearly 39.85% year-on-year. This boost underscores the competitiveness of Indonesian palm oil in global markets and highlights the commodity’s continued role as a major contributor to the country’s trade earnings. Optimistic projections from industry players, including producers like PT Sawit Mas Indonesia, suggest that production targets will further support these positive trends as the year progresses.
