Indonesia's Palm Oil Exports Set to Plummet in 2027

Indonesia's palm oil exports are expected to reach their lowest level since 2016 in 2027, according to forecasts by the Indonesian Palm Oil Association. The association predicts a decline of 14.9% year-on-year in 2027 to 26.5 million tons.

The decrease will be driven by lower production and increased domestic demand. Indonesia's palm oil output is forecast to fall by 3.7% to 56.6 million tons in 2027, while demand from the biodiesel sector is projected to rise to a record 17.4 million tons, up 18.5% from last year.

The El Niño weather phenomenon remains an additional risk factor for supply chain disruptions, which could further reduce oil palm yields and tighten export volumes.