Oils & Fats International (04/11/2025) - Palm oil production in Indonesia could rise by up to 10% this year to around 56M tonnes – higher than previous projections – with production supported by favourable weather conditions and strong prices, according to a CEO Morning Brief report quoting the Indonesian Palm Oil Association (GAPKI).

“Hopefully this year we can still grow compared to last year — our estimate is around 10%, to 56M-57M tonnes," GAPKI secretary general M Hadi Sugeng told reporters.

“The weather is favourable in 2024 and 2025, with no prolonged rainfall, and good prices last year have prompted our farmers to take better care of their plantations.”

GAPKI had increased its full-year forecast from a previous estimate of 53.63M tonnes, with an output of 57M tonnes amounting to an increase of 8% compared to 2024, the 28 October report said.

Indonesian palm oil exports were likely to increase to around 30M-31M tonnes, compared to 29M tonnes shipped out in 2024, Sugeng added, with the increase in production offsetting growing domestic demand driven by an expanded biodiesel mandate.

Earlier this year, Indonesia expanded its palm-oil based biodiesel mandate to 40% (B40), up from the previous 35% (B35) blend.

According to GAPKI, Indonesian palm oil production could rise by another 5% in 2026.

Palm oil stocks in Indonesia, the world’s leading palm oil producer, dropped slightly in August to 2.54M tonnes, 1% down from the previous month.

In August, the country exported 3.47M tonnes of palm oil products, a 1.8% decrease compared to the previous month, GAPKI said, adding that crude palm oil (CPO) production totalled 5.06M tonnes.

The association said it was planning to use insect pollinators to transfer pollen from male to female flowers and induce fruit formation, leading to a boost in output in late 2026 or early 2027.

Read more at https://www.ofimagazine.com/news/indonesias-palm-oil-output-on-course-to-rise-10-in-2025-association-says