Indonesia’s Palm Oil Exports Reach US$27.55 Billion as Biodiesel Demand Draws Down Stocks

Jakarta — Indonesia’s palm oil product exports were valued at US$27.55 billion in January–August 2026, up 11.14% from the same period a year earlier. As exports strengthened, biodiesel feedstock demand also increased and ending stocks fell to 2.214 million tonnes in August.

Indonesian Palm Oil Association (GAPKI) data show cumulative export volume reached 23.370 million tonnes, 2.97% above the 22.696 million tonnes recorded in January–August 2025. Export value grew faster than volume as the average CPO export price improved to US$1,140 per tonne from US$1,075.

August exports rise by double digits

Palm oil product exports reached 3.588 million tonnes in August 2026, up 12.56% from July. Their value increased 12.62% to US$4.29 billion.

• Processed palm oil products: 2.643 million tonnes, up 15.12%.
• CPO: 329,000 tonnes, up 31.83%.
• Processed palm kernel oil: 113,000 tonnes, up 14.58%.

The export increase came even as the average CPO export price eased slightly to US$1,164 per tonne from US$1,168 in July.

Biodiesel drives domestic consumption

Domestic palm oil consumption reached 2.304 million tonnes in August, up 1.28% from July. The increase was led by biodiesel, which used 1.350 million tonnes, 5.03% more than the 1.285 million tonnes recorded a month earlier.

Food consumption, by contrast, fell 3.79% to 775,000 tonnes. The shift highlights the biodiesel programme’s growing role in Indonesia’s domestic palm oil balance.

Stocks fall by almost 20%

Combined CPO and PKO production stood at 5.343 million tonnes in August, down about 0.50% month on month. With exports and domestic consumption rising, ending stocks declined from 2.758 million tonnes in July to 2.214 million tonnes in August, a drop of around 19.72%.

The figures strengthen the case for higher productivity. Growth in export and energy demand needs to be matched by production gains to maintain supplies for biodiesel, food and overseas markets.

The August data follow a 64% jump in palm oil exports in June 2026. Stock movements remain an important indicator in the second half of the year as B50 raises domestic demand.