Indonesia Prepares for El Niño Impact on Palm Oil Production

Indonesia is taking steps to mitigate the impact of El Niño on its palm oil production, which accounts for the largest share of global supply. Agricultural Minister Andi Amran Sulaiman acknowledged that El Niño would have some influence but expressed hope that the effect won't be significant.

To boost production, the government will ensure timely distribution of fertilizers to palm oil plantations and implement crop maintenance and pest control measures to counter drought effects.

Indonesia's palm oil production neared 30.3 million tons in the first half of 2026, a 7.4% increase from the same period last year. Exports were close to 16.6 million tons in volume, valued at around $19.4 billion.