News Capsule: Indonesia palm oil production seen rising 3% to 48 million tonnes: USDA
28-Apr-2026 10:31 AM
News Capsule: Indonesia palm oil production seen rising 3% to 48 million tonnes: USDA
★ Indonesia’s palm oil production is projected to increase by 3% to 48 million tonnes in 2026/27, according to the United States Department of Agriculture (USDA). The previous year’s output was 46.7 million tonnes.
★ Low rainfall and prolonged dry conditions in 2026 could impact yields, putting pressure on production growth.
★ Domestic consumption is also expected to rise to around 23.1 million tonnes, while exports are likely to increase to approximately 25 million tonnes.
★ Ending stocks are expected to decline by around 3% to 4.3 million tonnes.
★ Biofuel and industry data
★ B40 programme (2025): 14.2 billion litres biodiesel consumption
★ Potential B50 requirement: 20 billion litres/year
★ Current biodiesel production capacity: 22 billion litres (2026)
★ Overall, despite higher production, factors such as weather conditions, limited expansion, and policy-related demand pressures are expected to remain key challenges for Indonesia’s palm oil sector.