Wedoany.com Report-Jun 15, Indonesia is set to increase its palm oil exports in 2025 to 25 million tons, up by 1 million tons from the previous year, according to forecasts from German market analysts Oilworld. This rise follows a recovery in production after an earlier temporary decline in the year.

In the initial months of 2025, Indonesian palm oil exports saw a decline of more than 5%. April recorded a significant drop, with exports reaching only 1.31 million tons, compared to 2.3 million tons in March. However, by May, production had recovered, reaching 47.8 million tons, enabling a rebound in export volumes.

Between January and April 2025, Indonesia exported 7.4 million tons of palm oil, slightly lower than the 7.58 million tons exported during the same period in 2024. Analysts view this as a sign of consistent global demand despite earlier disruptions in logistics and production.

Key importers of Indonesian palm oil include countries in Europe, as well as China, India, and Pakistan. In the first four months of 2025, exports to the European Union totaled 757,000 tons. China received 865,000 tons, India imported 718,000 tons, and Pakistan imported 893,000 tons. Although exports to India showed a decline compared to the same period last year, increased demand from China helped offset the shortfall.

Industry experts attribute the renewed strength in exports to advances in processing technologies, which have improved overall efficiency. Additionally, steady global demand—particularly in the food and cosmetics sectors—has supported continued trade.

Indonesia is also working to broaden its export destinations. Trade agreements with countries across Asia and Africa are part of its strategy to diversify markets and enhance trade resilience.

Despite early-year setbacks, the outlook for Indonesian palm oil exports in 2025 remains positive. Increased production capacity, combined with stable international demand and ongoing efforts to strengthen trade relations, positions Indonesia to maintain its role as one of the world’s leading palm oil exporters.