Indonesia's 2026 palm oil exports may reach 35 million tonnes

NUSA DUA: Indonesia's exports of palm oil products are expected to reach around 35 million metric tonnes in 2026, Coordinating Minister for Economic Affairs Airlangga Hartarto told an industry conference yesterday.

Between January and October, exports of palm oil products reached 33.8 million tonnes, up six per cent year on year, Airlangga said. They were valued at US$28.84 billion, an annual increase of 16 per cent.

He said production is projected to reach around 60 million tonnes in 2026, up from 56.55 million tonnes in 2025, supported by government replanting programmes and investment in infrastructure to improve productivity.

However, the Indonesian Palm Oil Association, or Gapki, said El Niño could cut production by three million tonnes.

The weather phenomenon is projected to bring prolonged drought, increasing the risk of wildfires in palm-growing areas, with the biggest impact on output expected in 2027.

Gapki chairman Eddy Martono said the effects could persist for several harvests.

To limit potential production losses, Gapki also introduced three pollinator insect species from Tanzania this year.

The association is exploring the use of wild oil palm seeds to develop drought-tolerant varieties, Eddy added.