Indonesia’s palm oil exports surge to 2.75 million tonnes in June
Indonesia exported 2.75 million tonnes of crude and refined palm oil and PFAD in June, up from 1.49 million tonnes in May. China remained the largest buyer, while Oil World expects lower exports in the second half of 2026 as production declines and domestic biodiesel demand rises.
Monthly shipments rebound sharply
Indonesia’s exports of crude palm oil, refined palm oil and palm fatty acid distillate, or PFAD, rose to 2.75 million tonnes in June from 1.49 million tonnes in May, according to Oil World data reported by ZOL. The increase of 1.26 million tonnes represented a sharp monthly recovery in supplies from the world’s largest palm oil-exporting country.
Despite the rebound, June exports remained 0.3 million tonnes below their level a year earlier. This implies shipments of approximately 3.05 million tonnes in June 2025. The comparison shows that the monthly surge restored much of the previously lost volume but did not bring exports back to last year’s level.
Refined palm oil accounted for most of the June total. Shipments reached 2.21 million tonnes, compared with 1.33 million tonnes in May and 2.42 million tonnes in June 2025. Refined products therefore represented about four-fifths of Indonesia’s reported palm oil exports during the month, underlining the importance of the country’s processing industry to its overseas trade.
China leads a broad recovery in buying
China was the largest destination for Indonesian palm oil in June, purchasing 505,000 tonnes. That was almost twice May’s 259,000 tonnes, although it remained below the 587,000 tonnes delivered in June 2025. The Chinese market alone accounted for more than 18% of Indonesia’s June shipments.
India imported 361,000 tonnes, up from only 39,000 tonnes in May but below the 503,000 tonnes recorded a year earlier. Pakistan received 279,000 tonnes, compared with 148,000 tonnes in May and 244,000 tonnes in June 2025. Pakistan was therefore the only one of the three largest national buyers whose June volume exceeded both the previous month and the year-earlier level.
Shipments to the European Union increased more moderately to 213,000 tonnes from 185,000 tonnes in May, but remained below 240,000 tonnes a year earlier. Bangladesh purchased 169,000 tonnes, up from 71,000 tonnes in May and 159,000 tonnes in June 2025. Together, China, India, Pakistan, the European Union and Bangladesh absorbed 1.53 million tonnes, or more than half of Indonesia’s June exports.
Second-half supply outlook tightens
Indonesia exported 13.3 million tonnes of palm oil products in January-June 2026. Oil World said this was 0.65 million tonnes more than in the corresponding period of the previous year, indicating that the strong first-half result was not solely a consequence of June’s recovery.
The outlook changes for July-December. Oil World expects exports to decline noticeably from the same period of 2025 because of a projected reduction in production and higher domestic consumption, particularly for biodiesel manufacturing. The forecast points to greater competition between exporters and Indonesia’s fuel sector for available feedstock.
For refiners, traders and major Asian importers, the June figures offer evidence of Indonesia’s capacity to restore shipments quickly after a weak month. However, the expected second-half contraction means June’s 2.75 million tonnes should not automatically be treated as a new monthly pace. Buyers in China, India, Pakistan and Bangladesh will need to account for potentially tighter Indonesian availability, while processors face the task of balancing export demand with the expanding domestic call on palm oil for biodiesel.
