Indonesia's palm oil production is expected to increase by 10 percent

31-Oct-2025 07:52 PM

Jakarta. Indonesia, the world's leading palm oil producer and exporter, is expected to see a significant increase in the production of this important oil this year due to favorable weather and rainfall conditions.

According to the Indonesia Palm Oil Association (Gapki), domestic palm oil production could reach a new record level of 56-57 million tons in 2025, increasing by 10 percent.

Gapki's General Secretary stated that during the 2024-25 season, weather conditions remained favorable for the palm crop in the country – there were neither prolonged rains nor severe droughts.

Last year, palm prices were also high, encouraging planters to manage their crops better. This resulted in a significant increase in oil palm yields compared to previous years.

Gapki previously estimated Indonesia's palm oil production to be 53.63 million tons by 2025, but has now raised it to 56-57 million tons.

If 57 million tons are produced, it will represent an 8 percent increase compared to 2024. Based on this, Gapki also estimates Indonesia's palm oil product exports to jump from 29 million tons in 2024 to a high of 30-31 million tons in 2025.

Palm oil consumption is also expected to increase in the domestic sector, as the mandatory use of 40 percent palm oil in biodiesel production has already been implemented.