Indonesia’s palm oil consumption surges as exports decline

mandate, alongside needs from the food industry. Gapki chairman Eddy Martono stated that Indonesia remains the world’s largest producer and consumer of palm oil, accounting for 57% of global production and 27% of global consumption. Speaking at a webinar hosted by the Institute for Development of Economics and Finance (Indef), he highlighted production challenges, including land conflicts and the need to rejuvenate smallholder plantations. However, the priority remains supplying local biodiesel and food industries. Martono also projected strong CPO prices through the end of 2025, estimating a range of US$1,100 to US$1,200 per tonne, with a potential spot price of US$1,300 on CIF Rotterdam terms. Indonesia’s palm oil exports weakened last year as prices surpassed those of other vegetable oils, prompting global buyers to turn to cheaper alternatives like soybean oil. China and India remain the largest external markets, though shipments to India fell by 28% year-on-year in the first ...