PALMOILMAGAZINE, JAKARTA — Indonesia’s palm oil industry recorded strong growth in 2025, with national crude palm oil (CPO) production reaching 39.04 million tons as of August—up 13.1% year-on-year, according to the Indonesian Palm Oil Association (GAPKI).
GAPKI Secretary General Hadi Soegeng attributed the increase to favorable weather conditions since 2024, which significantly boosted harvest yields. “Climate has been a major factor behind this production surge. We expect palm oil output to grow by at least 10% this year,” he said during a GAPKI press briefing on Tuesday (Oct 28, 2025).
Exports have also risen sharply, with palm oil shipments up 15.3% YoY as of August 2025. The rise was driven by higher output and a narrowing price gap between palm oil and other vegetable oils, restoring its global competitiveness. “Earlier this year, the CPO premium over other vegetable oils turned negative from April to June, encouraging stronger demand,” Hadi explained.
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He emphasized that long-term industry resilience depends not only on price movements but also on production efficiency. “Improving productivity while reducing costs must remain a core focus for all stakeholders,” he said.
To strengthen competitiveness, GAPKI continues to promote innovation and technological efficiency, including the development of superior genetic resources, the use of Tanzanian pollinating weevils, adoption of Best Agricultural Practices (BAP), and the acceleration of automation, digitalization, and mechanization in plantations.
“With the right mix of technology and good agricultural practices, Indonesia’s palm oil industry will continue to grow stronger and more competitive on the global stage,” Hadi concluded. (P2)
