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Indonesia’s Palm Oil Export to China Rises by Double Digits
calendar28-08-2026 | linkJakarta Globe | Share This Post:

26/08/2026 (Jakarta Globe), Jakarta - Indonesia’s palm oil exports to its major trading partner China registered a double-digit rise in June, while shipments to traditional market India are skyrocketing by over 100%, according to a producer group's statistics.

 

Shipments have been on the rise compared to last year, with Indonesia selling almost 3.3 million tons to overseas markets in June alone, and exports nearing 16.6 million in the first half, according to data from the Indonesian Palm Oil Association (Gapki). Much of the palm oil was going to Chinese customers.

 

The China-bound exports in the first half of 2026 also jumped 31% year-on-year [yoy],”

Gapki executive director Mukti Sardjono said in a statement on Wednesday.

 

Mukti did not go into details on what type of palm oil China mainly bought, including the

total receipts from Beijing. However, a huge chunk of the palm oil leaving Indonesian

ports was already processed, amounting to about 2.3 million tons in June. The overall

processed palm oil exports were close to 11.8 million tons throughout the first half.

 

China is buying foreign palm oil mainly for food processing and consumer goods production. During a recent visit to Jakarta, Chinese Foreign Minister Wang Yi revealed that both countries “had agreed to encourage a balanced trade” as Jakarta’s deficit persists. The first-half deficit with mainland China swelled roughly 40% yoy to $13.8 billion.

Gapki data also showed India maintaining its status quo as a major buyer of Indonesian palm oil. Monthly exports even went up by a whopping 396%. He did not say the reason behind the spike. The yearly shipments to New Delhi, however, had dipped by 7% yoy in the first six months of 2026.

 

Indonesia's entire palm oil exports in June amounted to $3.9 billion in value. The yearly shipments already totaled at least $19.4 billion.

 

https://jakartaglobe.id/business/indonesias-palm-oil-export-to-china-rises-by-double-digits