Palm nuts and kernels market in Indonesia

Earlier Report Observations

The market for palm nuts and kernels in Indonesia expanded from 206 million tons in 2018 to 252 million tons in 2021. This growth was primarily driven by a six-fold increase in the plantation area operated by smallholders, which raised their share in the national industry from 27% to 41%. Government policy and support through state-owned companies further stimulated production. By 2021, rising crude oil prices boosted demand for palm oil for biodiesel, leading to higher export values and additional production increases.

After peaking in 2021, production eased to 238 million tons in 2022. This moderation was influenced by global factors such as European Union restrictions on palm oil imports linked to deforestation concerns, along with rupiah exchange rate fluctuations that affected export competitiveness. In 2023, output stabilized at 240 million tons as new investments and the launch of large-scale processing facilities, coupled with ongoing efficiency improvements on plantations, helped offset earlier challenges.

Production palm nuts and kernels in Indonesia

In kind, 2018-2021, M t

Indonesia was the world's leading producer of palm nuts and kernels from 2018 to 2021, ranking first globally by production volume.

Top producers of palm nuts and kernels, 2018-2021

World map of production of palm nuts and kernels, 2018-2021

Indonesia's production of palm nuts and kernels grew for the third consecutive year. In 2021, the country produced 252.0 million tons, marking a significant increase of 11.0% compared to the previous year. Over the 2018-2021 period, production rose by 22.3%, with an average annual growth rate of 6.9%.

Annual dynamics of production in Indonesia in kind, 2018-2021, M t

Exports palm nuts and kernels from Indonesia

Exports in kind, t

Indonesia's exports of palm nuts and kernels declined for the third year in a row. In 2021, exports totaled 18 706 tons, showing a sharp decrease of 26.4% from 2020. Between 2018 and 2021, exports fell by 66.2%, equivalent to an annualized decline of 30.3%.

Annual dynamics of product's exports from Indonesia in kind, 2018-2021, t

From 2018 to 2021, Indonesia's exports of palm nuts and kernels were almost entirely concentrated in Malaysia, which accounted for 99.8% of the total volume.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Indonesia in kind, 2018-2021

Exports in value, K $ US

Indonesia's exports of palm nuts and kernels in value terms declined for the third consecutive year. In 2021, exports amounted to 7 402 thousand US dollars, representing a modest drop of 4.3% from the previous year. Over the 2018-2021 period, exports decreased by 69%, with an average annual decline of 32.3%.

Annual dynamics of product's exports from Indonesia in value, 2018-2021, K $ US

Throughout 2018-2021, Malaysia dominated Indonesia's export structure in value terms, holding a 93.6% share of total flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Indonesia in value, 2018-2021

Imports palm nuts and kernels to Indonesia

Imports in kind, t

The market showed an unstable trend during this period. Imports reached their lowest point in 2020 and peaked in 2018, with a 247-fold difference between these years. In 2021, Indonesia's imports of palm nuts and kernels reached 25 tons, up by 13 447.8% year-on-year. The minimum value was recorded in 2020 at 0.2 tons, with the largest decline of 98.8% also occurring that year.

Annual dynamics of product's imports to Indonesia in kind, 2018-2021, t

From 2018 to 2021, India, Sudan, and Papua New Guinea were the largest contributors to Indonesia's imports of palm nuts and kernels in volume terms, accounting for 43.6%, 28.6%, and 18.4% of imports, respectively. Together, they made up 90.7% of total flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Indonesia in kind, 2018-2021

Imports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. Imports were at their lowest in 2020 and highest in 2018, with a 43-fold gap between these years. In 2021, Indonesia's imports of palm nuts and kernels reached 63 thousand US dollars, up by 200.7% from 2020. The minimum value was recorded in 2020 at 21 thousand US dollars, with the largest decline of 95.2% also occurring that year.

Annual dynamics of product's imports to Indonesia in value, 2018-2021, K $ US

From 2018 to 2021, Malaysia and Papua New Guinea were the dominant suppliers of palm nuts and kernels to Indonesia in value terms, together accounting for 86.5% of total imports. Other destinations each held relatively small shares.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Indonesia in value, 2018-2021