Indonesia palm oil use surges as exports fall

domestic use, with food consumption followed by energy or biodiesel demand,” Gapki chairman Eddy Martono said on Monday. Speaking during a webinar hosted by the Institute for Development of Economics and Finance (Indef), Eddy added that Indonesia is the world’s largest producer as well as consumer of CPO, accounting for 57% of global output and 27% of global use. He also acknowledged production challenges, such as land conflicts and the need to rejuvenate smallholder plantations with new plants, but stressed the priority is supplying local biodiesel and food industries. Eddy continued that CPO prices are expected to remain strong through the end of 2025 at an estimated range of US$1,100 to US$1,200 per tonne, with a potential to reach a spot price of US$1,300 on CIF Rotterdam. “Global vegetable oil demand continues to rise while production in Indonesia and Malaysia has stagnated, supporting high prices,” he said. Regulatory clarity remained a key concern, and Gapki urged the ...