Indonesia’s Domestic Palm Oil Consumption to Exceed Exports in 2026, IPOSS Forecasts

In its fourth-quarter 2026 outlook, titled Maintaining Room for Growth Amid a New Balance, published on October 14, IPOSS forecasts that domestic consumption will account for 51.3% of Indonesia’s total palm oil utilization in 2026. Exports are projected to represent the remaining 48.7%. The shift comes as national production growth remains relatively modest. IPOSS estimates that Indonesia will produce 52.4 million tonnes of palm oil in 2026, an increase of just 1.86% from 2025. Meanwhile, domestic consumption is projected to rise 7.4% to approximately 27.1 million tonnes, driven primarily by increased demand for biodiesel feedstock following the implementation of the...

Indonesia’s Finance Ministry Calls for Private Investment to Boost Palm Oil Productivity and Jobs

Speaking at the Plantation360: Mobilizing Private Capital for More and Better Jobs event in Bangkok, Thailand, on Tuesday, October 13, 2026, Suahasil said investment should reach across the palm oil value chain, including initiatives that strengthen the capacity of independent and partnered smallholders. The event was organized by EDS16 in collaboration with the Council of Palm Oil Producing Countries (CPOPC). Suahasil emphasized that palm oil plays a strategic role in Indonesia’s economy, supporting rural livelihoods while supplying raw materials for manufacturing, food production and the energy sector. Indonesia has more than 16.8 million hectares of oil palm plantations, approximately 41%...

Bandung Sahari Seeks to Change the Narrative Around Indonesia’s Palm Oil Industry

“Why do we always learn about palm oil from foreigners?” asks Bandung, who serves as Head of Communications at the Indonesian Palm Oil Association (GAPKI). For him, the question reflects a broader concern: Indonesia is the world’s largest palm oil producer, yet domestic perspectives and locally generated research do not always receive sufficient attention in international and public discussions. Bandung has spent decades working in the plantation sector and is also involved in environmental and scientific organisations. His affiliations include the Governing Board of Peka Indonesia Foundation, the Peat Society of Indonesia and the Entomological Society of Indonesia. His scientific...

IPOC 2026 to Examine Geopolitics, Energy Security and Global Palm Oil Market Outlook

Held under the theme “Palm Oil in a Fragmented World: Securing Food, Energy, and Economic Resilience,” the conference will take place at The Westin Resort Nusa Dua, bringing together government representatives, market analysts, academics, industry players and international partners. IPOC 2026 organising committee chairman Suryanto Bun said the annual event would provide a platform to examine policy developments and market prospects affecting the palm oil industry in Indonesia and globally. As the world’s largest palm oil producer, Indonesia plays a significant role in global vegetable oil supplies. Domestically, the sector supports food production, cooking oil availability, biodiesel development, export earnings...

Smallholder Palm Oil Replanting Hits 428,000 Hectares in a Decade as Administrative Bottlenecks Persist

Speaking at a press conference during preparations for the 22nd Indonesian Palm Oil Conference (IPOC 2026) in Jakarta on Friday (9/10/2026), Suryanto Bun, Head of GAPKI’s PSR Acceleration Division, revealed that total replanted area over the past decade reached approximately 428,000 hectares. "While we acknowledge minor administrative improvements and reduced paperwork requirements, fulfilling field compliance remains a persistent hurdle," Suryanto told . Forestry Overlaps and Legal Certainty A major obstacle facing smallholders is securing land legality documentation. The process is particularly complex for smallholder farms operating near or overlapping with designated state forest areas (kawasan hutan), creating administrative deadlocks that...

Jambi Trains 118 Oil Palm Smallholders in Harvesting and Post-Harvest Management

These issues were at the centre of a harvesting and post-harvest training programme attended by 118 oil palm smallholders from Tebo, Sarolangun and Batanghari regencies in Jambi Province. Held from October 7–11, 2026, the programme formed part of Indonesia’s 2026 Oil Palm Plantation Human Resource Development Programme, a collaboration involving the Plantation Fund Management Agency (BPDP), the Directorate General of Plantations at the Ministry of Agriculture, and IPB Training. According to a report by Kabarku on the programme, Prof. Dr. Ir. Hariyadi, MS, head of the IPB Training team, emphasised the importance of proper harvesting techniques in determining plantation output....

Indonesia Reclaims 6.2 Million Hectares of Forest Areas Linked to Oil Palm Plantations

Attorney General ST Burhanuddin, who also serves as Deputy Chair I of the task force’s steering committee, announced the achievement during a briefing at the Attorney General’s Office on Tuesday, October 6, 2026. “Since its establishment in February 2025, the task force has successfully reclaimed 6,206,212.14 hectares of forest areas. In the mining sector, it has reclaimed 14,633.79 hectares,” Burhanuddin said. 259,000 Hectares Transferred to Forestry Ministry During its eighth enforcement phase, Satgas PKH transferred 259,230.73 hectares of forest areas to the Ministry of Forestry. Of this total, 140,762.04 hectares are slated to be handed over to state-owned PT Agrinas...

India Turns to Palm Oil as Russian Sunflower Oil Shipments Disrupted by War

A cargo of around 20,000 tonnes of Russian sunflower oil bound for India was cancelled after damage to port infrastructure in the Black Sea region prevented the supplier from fulfilling the shipment. A further 60,000 tonnes of sunflower oil destined for India have also faced delays. Sandeep Bajoria, president of the International Sunflower Oil Association and chief executive of Mumbai-based Sunvin Group, said cancellations of sunflower oil shipments were unusual in the market. “Washouts of this kind are rare. But Black Sea infrastructure is now being damaged by the war,” Bajoria said, as reported by Reuters and published by on...

Indonesia Faces Potential 27 Million-Tonne Palm Oil Supply Deficit by 2045

Bandung Sahari, head of communications at the Indonesian Palm Oil Association (GAPKI), said the industry contributes to the national economy through more than crude palm oil (CPO), with its derivatives serving the food, industrial and energy sectors. Indonesia produces approximately 49 million metric tonnes (MT) of the world’s estimated 85 million MT of palm oil, accounting for around 58% of global output. Bandung also noted that Indonesia supplies approximately 22% of global vegetable oil. However, without significant production growth, Indonesia could face a palm oil supply deficit of up to 27 million MT as it seeks to meet domestic demand...

Indonesia Palm Oil Exports Fall in July as Shipments to India and Russia Slump

The Indonesian Palm Oil Association (GAPKI) recorded total exports of palm oil products at 3.188 million tonnes in July, down 2.67% from 3.275 million tonnes in June. Executive Director of GAPKI, Mukti Sardjono, said the decline was reflected across several product categories. CPO exports fell 25.70% to 249,000 tonnes, from 335,000 tonnes in June. Exports of processed palm oil products declined 2.57% to 2.296 million tonnes, while shipments of processed palm kernel oil products fell 14.60% to 99,000 tonnes. Oleochemical exports, however, provided some support, rising 14.94% to 537,000 tonnes from 467,000 tonnes a month earlier. “In the midst of...

Indonesia Explores Palm-Based Alternatives to Soybean Meal in Poultry Feed

Makmun, Director of Livestock Downstreaming at the Ministry of Agriculture, said palm-based ingredients could help reduce SBM imports if their share in feed formulations could be raised to more than 10%. “If it can exceed 10%, it would reduce our SBM imports, as these could be substituted with palm-based materials. Hopefully, the research can move faster,” Makmun said during a regional inflation control coordination meeting in 2026, monitored through the Ministry of Home Affairs’ official YouTube channel on Tuesday, October 6, 2026. According to information reported by , the use of palm-based materials in poultry feed remains limited, partly because...

US Blocks Palm Oil Imports from Indonesia’s MAR and HIP Over Forced Labor Concerns

Under the orders, CBP officers at US ports of entry will detain shipments covered by the restrictions. The agency said its decision followed a review of evidence indicating reasonable grounds to suspect that forced labor had been used in the production of palm oil and related products from the two companies. “Mengeksploitasi pekerja adalah tindakan yang tidak manusiawi serta merugikan keamanan ekonomi dan nasional kita,” said Susan S. Thomas, Executive Assistant Commissioner of CBP’s Office of Trade, as reported by , citing Kompas on Monday (October 5, 2026). Thomas warned that labor exploitation extends beyond workplace conditions, potentially harming workers...

176 South Sumatra Smallholders Join Oil Palm Cultivation Training to Boost Productivity

Against this backdrop, 176 smallholders from Ogan Komering Ulu (OKU) Regency in South Sumatra participated in an oil palm cultivation training programme held in Palembang from September 29 to October 4, 2026. According to , citing an official statement received on Sunday, October 4, the programme was organised through a collaboration between Indonesia’s Plantation Fund Management Agency (BPDP), the Directorate General of Plantations and IPB Training. OKU has approximately 72,900 hectares of oil palm plantations, most of which are managed by smallholders. The extensive plantation area represents a significant economic asset for the region, but improving output depends heavily on...

Danantara Tests NADI Digital Platform to Strengthen Oversight of Palm Oil Exports

The pilot brings together industry associations and government institutions to test processes, gather feedback and refine the system before further development. In a statement received by on Saturday, October 3, 2026, DSI said the initiative was designed to support a more integrated export ecosystem. Six industry associations are participating in the pilot: the Indonesian Coal Mining Association (APBI-ICMA), the Indonesian Palm Oil Association (GAPKI), the Indonesian Vegetable Oil Industry Association (GIMNI), the Indonesian Oleochemical Producers Association (FINI), the Indonesian Employers Association (APINDO) and the Indonesian Mining Association (IMA). Government participants include the Coordinating Ministry for Economic Affairs, the Ministry of...

Indian Coast Guard Rescues 23 Crew From Tanker Carrying 9,000 Tons of Palm Oil

The incident involved the MT Seagull 9, which issued a distress signal before Indian authorities launched a rescue and stabilization operation. The vessel was subsequently brought under control and towed toward Paradip under the escort of Indian Coast Guard units. According to information reported by Times of India and republished by , the operation took place on Monday, with specialized personnel deployed aboard the tanker to address the emergency. The Indian Coast Guard's Damage Control Team used submersible pumps to remove water from the vessel's ballast tanks. The team also worked to seal damaged sea pipelines in an effort to...

Pekanbaru Develops Sustainable Palm Oil Action Plan for 24,000 Hectares

The sizeable plantation area is now becoming a focus of the Pekanbaru municipal government as it prepares a Regional Action Plan for Sustainable Palm Oil, or Rencana Aksi Daerah Kelapa Sawit Berkelanjutan (RAD-KSB). The initiative is intended to ensure that the development of the palm oil sector contributes to long-term economic growth while maintaining environmental sustainability. Pekanbaru Deputy Mayor Markarius Anwar said the city's estimated 24,000 hectares of oil palm plantations represented an important economic asset for both the regional economy and local communities. Markarius made the statement while opening a RAD-KSB socialization event organized by the Pekanbaru Agriculture and...

Indonesia Agrarian Reform Law Raises Regulatory Questions for Malaysian Palm Oil Firms

The law, approved by Indonesia’s House of Representatives on September 22, 2026, introduces a framework for restructuring land ownership and control, strengthening land redistribution and improving mechanisms for resolving agrarian conflicts. However, the practical impact on plantation companies remains unclear because several implementing regulations have yet to be issued. According to KLSE Screener, Public Investment Bank analyst Chong Hoe Leong said the new regulation could add to the regulatory challenges facing Malaysian plantation companies after the sector encountered land-related issues and significant penalties in Indonesia over the past year. 20% Land Provision Draws Attention One provision being closely watched by...

Indonesia’s Agrarian Reform Law and the Outlook for Palm Oil Investment

The legislation was approved relatively quickly, raising questions over the depth of deliberations and the extent to which public participation and the interests of affected communities were accommodated during the legislative process. These issues are particularly important given the scale of land governed by agrarian policy and the economic value of Indonesia's plantation sector. Indonesia's palm oil industry remains closely tied to land-use certainty. The sector generates significant foreign exchange and provides livelihoods for millions of people. Its long-term development therefore depends not only on land governance that is fair, but also on rules that are predictable for businesses and...

Politeknik Sawit CWE Graduates Poised to Drive Indonesia’s Palm Oil Industry Toward 2045

That message was highlighted by Nugroho Kristono, Director of Politeknik Kelapa Sawit Citra Widya Edukasi (Poltek Sawit CWE), during the graduation ceremony for the institution’s fourth cohort of Applied Bachelor graduates and 18th cohort of Associate Degree graduates in Bekasi, West Java, on Sunday (Sept 27, 2026). The ceremony marked the graduation of 248 students from five study programs, with graduates expected to enter the industry equipped not only with technical skills but also with the ability to contribute through innovation and professional expertise. Nugroho said graduation should not be viewed as the end of the learning process. As plantation...

PURAKA Warns of Legal and Livelihood Risks for Smallholders After Palm Oil Land Repossession

The Center for Law and Conflict Resolution (PURAKA) has warned that smallholders could face a range of risks after plantations taken over through the government’s forest-area enforcement process are handed over for management by state-owned Agrinas Palma Nusantara. According to PURAKA Head Ahmad Zazali, as presented on Thursday (September 24, 2026), the issues following repossession extend beyond asset control. They include legal certainty, governance, community rights, environmental protection and the sustainability of farmers’ livelihoods. PURAKA describes the process as involving several stages, beginning with plantations or forest areas identified as problematic, followed by repossession by the Forest Area Task Force...