Palm Oil and Downstream Products Support Indonesia’s 6.72% Export Growth
Indonesia’s exports reached $26.61 billion in August 2026, up 6.72% from a year earlier. Palm oil and its derivatives joined iron and steel and coal among the products supporting non-oil and gas trade, although no separate value was reported for palm exports.
August exports reach $26.61 billion
Indonesia’s exports rose 6.72% year on year to $26.61 billion in August 2026, with palm oil and downstream products remaining part of the country’s main non-oil and gas export base. InfoSAWIT Sumatera reported that palm products, iron and steel, and coal were among the commodities supporting the monthly result.
Non-oil and gas exports accounted for $25.62 billion, or most of the total recorded in August. According to an official statement from Indonesia’s Ministry of Trade cited by InfoSAWIT Sumatera, the performance demonstrated the resilience of the country’s trade amid changing global economic conditions. Trade Minister Budi Santoso said the figures showed that Indonesian products continued to attract demand in international markets.
Manufacturing strengthens its contribution
Manufactured exports grew 12.48% in August. Over the first eight months of 2026, their value reached $159.55 billion, an increase of 7.87% from the same period of 2025. This expansion placed manufacturing among the main contributors to Indonesia’s external trade performance and showed the growing importance of processed products alongside raw commodities.
Total exports between January and August amounted to $193.64 billion, up 4.74% year on year. The cumulative increase was therefore more moderate than the August growth rate, while manufacturing expanded faster than total exports over both the monthly and year-to-date periods covered by the government figures.
For resource-based industries, higher manufactured exports create opportunities to capture more value through domestic processing. The palm oil chain includes crude palm oil as well as a broad range of downstream products. Expanding the processed portion of that chain can raise the value generated from the same raw-material base and diversify the products offered to overseas buyers.
Palm oil’s precise contribution remains unclear
The figures released by the Ministry of Trade did not provide a separate export value for palm oil or its derivatives. As a result, the commodity’s precise contribution to the 6.72% increase cannot be calculated from the available aggregate data. Palm oil can be identified as one of the supporting product groups, but its performance cannot be separated from that of other non-oil and gas exports.
China, the United States and India were the leading destinations for Indonesia’s non-oil and gas exports during the period, according to the ministry. These markets are important to Indonesia’s wider export portfolio and to globally traded commodities such as palm oil. For producers and processors, maintaining access to major destinations will remain central to sustaining volumes, while investment in downstream products offers a route to higher value. Actual results will continue to depend on international demand, prices and trade conditions in destination markets.
