Indonesia forecasts 10% rise in palm oil output for 2025

Indonesia’s palm oil production is expected to increase by around 10 per cent in 2025, reaching 56–57 million tonnes, according to VNA, a partner of TV BRICS, citing information from the Indonesian Palm Oil Association (GAPKI). 

GAPKI Secretary-General Hadi Sugeng said favourable weather conditions in 2024–2025, combined with improved plantation management encouraged by high prices last year, have created optimism for higher yields. The association’s latest estimate represents a significant jump from its previous forecast of 53.63 million tonnes, marking an 8 per cent increase over 2024.

Exports are also expected to rise in tandem with production. Officials anticipates shipments of 30–31 million tonnes in 2025, up from 29 million tonnes the previous year. This growth is expected to offset higher domestic demand following the implementation of Indonesia’s B40 biodiesel programme, which mandates a 40 per cent palm oil blend in diesel fuel.

Looking ahead, Indonesia forecasts a further 5 per cent increase in 2026 and plans to introduce insect pollinators to improve fruit formation.

Photo: SuriyaDesatit / iStock