Indonesia’s palm oil exports surge 60 percent in January, but trade surplus narrows
03/03/2026 (Indonesia Business Post) - Indonesian palm oil exporters started 2026 with significant momentum as overseas shipments surged in January, according to the latest data from Statistics Indonesia (BPS). However, this robust growth was insufficient to prevent a sharp contraction in the nation’s overall trade surplus.
Export performance
Indonesia’s exports of crude palm oil (CPO) and its derivatives reached US$2.29 billion (Rp38.6 trillion) in January, a substantial increase from the US$1.44 billion recorded during the same period last year.
“Our palm oil exports rose 59.63 percent year-on-year,” BPS Deputy Ateng Hartono stated during a press briefing in Jakarta, as reported by Jakartaglobe.id, on Monday, March 2, 2026.
In terms of volume, shipments skyrocketed 77.07 percent year-on-year, climbing from 1.27 million tons to 2.24 million tons. The palm oil sector now accounts for approximately 10.78 percent of Indonesia’s total non-oil and gas export value.
Global pricing dynamics
International CPO prices saw a modest month-to-month increase of 1.81 percent, averaging US$997.82 per metric ton in January. Despite this monthly gain, prices remain 6.77 percent lower than they were a year ago, reflecting a broader stabilization in global commodity markets.
Geopolitical exposure
While BPS did not provide a full breakdown of export destinations, "animal and vegetable oils and fats," a category dominated by palm oil, constituted a significant portion of trade with Iran. Currently entangled in escalating tensions with Israel, the U.S., and several Gulf states, Iran received US$2.1 million in these exports in January.
Analysts note that these figures do not yet reflect the full economic impact of the intensifying Middle East conflict, which escalated further following the January reporting period.
The trade surplus paradox
Despite the double-digit growth in its flagship commodity, Indonesia’s overall trade surplus narrowed significantly. The goods trade surplus fell to US$950 million in January 2026, down from US$2.51 billion in December 2025.
This is a sharp decline compared to the US$3.49 billion surplus recorded in January 2025.
Nevertheless, Southeast Asia’s largest economy has managed to maintain its resilience, extending its streak of consecutive monthly trade surpluses to 69 months, a run that began in May 2020.