Indonesia's 2027 palm oil output to drop 2.9%, Gapki says
02/09/2026 (Reuters), Jakarta - Indonesia's palm oil output in 2027 is expected to drop by 2.9% to 56.8 million metric tonnes due to prolonged dry weather that has disrupted plantation maintenance, an official from the palm oil association Gapki said on Wednesday.
Indonesia, the world's largest producer of palm oil, is experiencing conditions from the El Nino weather pattern that have caused drought and exacerbated wildfires in Sumatra and Kalimantan.
"Due to dry weather, many companies have stopped fertilising, because even if we apply fertiliser, it would be wasteful as it will vapourise," Gapki secretary general Hadi Sugeng told Reuters.
Fertiliser prices in the second half of this year have also increased by 30%, he said, due to impacts from the war in Middle East.
Gapki estimated 2026 palm oil production, including crude palm oil and palm kernel oil, at 58.5 million metric tonnes, below its earlier estimate of 58.8 million tonnes as dry weather slowed down fruit maturity.
This year output is expected to be 3.4% higher than the 56.55 million tonnes of 2025 as replanted areas and new estates are expected to begin production.
"Replanting carried out by companies has entered production phase. Those replanted over the past five years are already producing," he said.
"There is also an indication of an increase in the area under palm oil cultivation, through conversion of non-oil palm to oil palm, particularly smallholder plantations," Hadi said.