Indonesia’s palm oil exports rise 12.56% in August as stocks fall to 2.214 million tonnes

Exports accelerate while production edges lower

Indonesia’s exports of palm oil products rose 12.56% month on month to 3.588 million tonnes in August 2026, according to the Indonesian Palm Oil Association, GAPKI. July exports stood at 3.188 million tonnes. The increase came despite a slight monthly decline in production and, together with stronger domestic consumption, reduced the country’s ending stocks to 2.214 million tonnes.

ANTARA reported that refined palm oil exports increased 15.12% to 2.643 million tonnes from 2.296 million tonnes. Crude palm oil shipments climbed more sharply, rising 31.83% to 329,000 tonnes from 249,000 tonnes. Exports of processed palm kernel oil also advanced, increasing 14.58% to 113,000 tonnes from 99,000 tonnes.

Export revenue reached $4.29 billion in August, 12.62% above July’s $3.81 billion. For January through August, shipments totaled 23.370 million tonnes, up 2.97% from 22.696 million tonnes in the same period of 2025. Their value increased 11.14% to $27.55 billion from $24.78 billion, with GAPKI attributing the stronger revenue performance to relatively better export prices.

Biodiesel drives domestic demand

Domestic consumption reached 2.304 million tonnes in August, an increase of 1.28% from 2.275 million tonnes in July. Biodiesel was the main source of growth: palm oil consumption by the sector rose 5.03% to 1.350 million tonnes from 1.285 million tonnes, GAPKI Chairman Eddy Martono said at a press conference in Jakarta.

Demand from other domestic segments weakened. Jawa Pos reported that food-sector consumption declined 3.79% to 775,000 tonnes from 805,000 tonnes, while oleochemical use fell 2.70% to 180,000 tonnes from 185,000 tonnes. Even so, cumulative domestic consumption for January-August reached 17.523 million tonnes, 6.81% above the 16.406 million tonnes recorded in the corresponding period of 2025.

Crude palm oil production slipped 0.50% to 4.880 million tonnes in August from 4.904 million tonnes in July. Palm kernel oil output declined to 464,000 tonnes from 466,000 tonnes. Combined CPO and PKO production was 5.343 million tonnes, also 0.50% lower than July’s 5.370 million tonnes. The longer-term comparison remained positive: output in the first eight months reached 40.997 million tonnes, up 5.02% year on year from 39.037 million tonnes.

Lower inventories tighten the operating balance

GAPKI’s cumulative balance included opening stocks of 2.068 million tonnes, production of 40.997 million tonnes, domestic consumption of 17.523 million tonnes, exports of 23.370 million tonnes and imports of 43,000 tonnes. These flows left inventories at 2.214 million tonnes at the end of August, according to GAPKI Secretary-General M. Hadi Sugeng Wahyudiono.

ANTARA identified higher August export volumes to Pakistan, India, Russia, Bangladesh and Malaysia compared with July. The reported increases were 265,000 tonnes for Pakistan, 89,000 tonnes for India, 77,000 tonnes for Russia, 66,000 tonnes for Bangladesh and 38,000 tonnes for Malaysia. For producers and processors, the August data show a market absorbing more output through both exports and biodiesel even as monthly production softened. Traders and buyers will therefore be watching whether production recovers and whether export demand remains strong enough to keep inventories constrained.