11/03/2026 (Reuters), Jakarta - Palm oil export orders for new shipments have moderated after the US-Israeli war with Iran drove up logistics and insurance costs, Indonesia's leading producers' body GAPKI said on Wednesday.

Indonesia is the world's largest exporter of palm oil, used in foods, cosmetics and cleaning products. The oil accounts for more than half of global vegetable oil shipments and is widely consumed in emerging markets such as India.

GAPKI chairman Eddy Martono said shipping and insurance costs rose by 50% after the conflict broke out, as the ships were forced to take a longer route while insurance costs increased due to conflict-related risks.

"There has been a slight decrease in demand ... because costs have increased. We are now fulfilling the contracts we have signed. But for the new ones, there has been a slight decrease," Eddy told reporters.

Despite the ongoing exports, he said a slower pace of shipments could result in a stock buildup in Indonesia, the world's largest palm oil producer, which could put pressure on palm oil prices.

Eddy said GAPKI has no estimates yet on how much exports have declined, but there were some indications of a downturn. He added an estimate could be available at the end of March.

Indonesia shipped 1.8 million metric tons of palm oil to the Middle East last year, Eddy said, about 5% of the country's palm oil exports.

Meanwhile, demand from top buyers India and China was also lacking, Eddy said, as edible oil stocks in both markets appeared stable.

Palm oil prices have risen more than rival soyoil and sunflower oil since the conflict began, erasing its price advantage, said a New Delhi-based dealer with a global trade house.

"The landed cost of palm oil in India was nearly US$100 (RM392.30) per ton lower than soyoil just a month ago. Now it is only about US$30 cheaper. For European buyers, palm oil is more expensive than soyoil because of higher freight," the dealer said.

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