The Indonesian crude palm oil (CPO) industry experienced a significant boost through August 2025, with national exports jumping 15% to reach 22.69 million tons, penetrating six continents including Asia, Europe, Africa, the Americas, Australia and parts of the Middle East. This upturn is attributed to improved domestic production and stronger global demand following price fluctuations in 2024. Export value also surged by 43% to about USD 24.78 billion (≈ IDR 406 trillion at USD 1 = IDR 16,400) amid the higher average price of USD 1,204 per ton (up from USD 1,009 per ton the previous year).
Domestic consumption of palm oil also rose by 5% to 16.4 million tons by August 2025. Strong uptake in the biodiesel sector (12% growth for 8.3 million tons) and steady use in food and oleochemical industries underscore how palm oil is not only an export staple but increasingly a pillar of Indonesia’s energy transition and industrial strategy. The Gabungan Pengusaha Kelapa Sawit Indonesia (GAPKI) sees 2025 as a turning point for the industry, emphasizing the strategic importance of sustaining productivity gains, diversifying downstream products (bio-aviation fuel, bioplastics, surfactants), and expanding into non-traditional markets to maintain Indonesia’s status as a leading vegetable-oil supplier worldwide.
