Oilseeds and Products Update
ID2026-0030 – Indonesia’s transition to the B50 biodiesel mandate, which took effect in July 2026, is projected to raise domestic palm oil consumption by 11 percent to 25.3 million metric tons (MMT), reducing exportable supplies to 23.1 MMT in 2026/27. The May 2026 rollout of Indonesia’s soybean meal (SBM) import licensing system spurred opportunistic buying, prompting animal feed producers to accelerate imports during the transition period. However, delays in issuing import permits to private traders led to SBM stock shortages among smallholder poultry farmers.
Indonesia Centralizes Palm Oil Exports
ID2026-0024 – Following President Prabowo’s announcement that Indonesia will centralize its palm oil and select other non-agricultural exports through a newly appointed state-owned enterprise, the Government of Indonesia issued Ministry of Trade Regulation 16/2026 in early June 2026. This regulation lists palm oil products that may only be exported by a designated state-owned enterprise beginning in January 2027. The United States ranked as the fifth-largest destination for Indonesian palm oil exports, receiving 1.3 million metric tons (MMT) in calendar year (CY) 2025.
Oilseeds and Products Annual
ID2026-0013 – Indonesia’s 2026/27 palm oil production is forecast to rise 3 percent to 48 million metric tons, up from 46.7 million metric tons, driven by a wave of trees planted between 2021 and 2024 reaching maturity and the wider use of higher-yielding seed varieties. Soybean meal demand from the feed sector is expected to remain strong in 2026/27, although importers may experience significant uncertainty in 2025/26 under new government import policies. Lower coconut prices are also projected to improve copra mills’ utilization rates in 2026/27.
Oilseeds and Products Update
ID2025-0031 – Indonesia’s palm oil export estimate is revised down from the previous estimate to 22.8 MMT in 2024/25 due to the B40 mandate and reduced export demand. Soybean consumption is expected to remain flat at 2.8 MMT in 2024/25 amid weak consumer purchasing power. Lower prices encouraged imports of soybeans and soybean meal, but depreciation of the Indonesian Rupiah and weak demand slowed this trend.
Indonesia Raises Palm Exports Levy
ID2025-0022 – On May 14, 2025, Indonesia raised export levies for most palm oil products, from 7.5 percent to 10 percent for crude products and up to 9.5 percent for refined products. The levy increases are meant to sustain the new B40 blend mandate program.
Oilseeds and Products Update
Id2025-0007 – Indonesia’s palm oil export estimates for 2024/25 are lowered due to the rollout of the new B40 Biodiesel mandate which is expected to raise domestic industrial palm demand by 2 percent. The expansion of the government’s Free Nutritious Meals Program is projected to increase demand for soy-based foods as well as soy-based feed ingredients to fuel increased domestic production of animal protein for the program in 2024/25. Imports of soybean and soybean meal accelerated in the first two months of 2024/25 as prices softened.
Indonesia Simplifies Palm Oil Export Levies in Response to Decreasing CPO Exports
ID2024-0025 – Indonesia introduced a new, simplified set of export levies for palm oil products, effective September 21, 2024, amidst decreasing crude palm oil (CPO) exports due to competition from other edible oils. Most of the new levies for palm oil exports will be reduced to between 3 percent to 7.5 percent of the reference price which the Government of Indonesia sets monthly. Under the new set of levies, the export levy for waste product palm oil mill effluent (POME) is expected to increase to be on par with the levy for CPO. In addition, the export levy for used cooking oil (UCO) would also increase.
Oilseeds and Products Update
ID 2024 – 0022 – Indonesia palm oil exports are estimated to decline to 26.5 million metric tons (MMT) in 2023/24 on lower output and weaker demand from key destination markets. Post revised down 2023/24 palm oil production to 45.6 MMT as 2023’s El Nino led to much lower yields than previously anticipated. Indonesia 2023/24 soybean production is also revised down to 360,000 metric tons on reduced government assistance for soybean production. Post revises 2023/24 soybean meal imports down to 5.65 MMT on weak demand from the poultry feed industry.
Oilseeds and Products Annual
ID2024-0004
Indonesia palm oil production is forecast to rise marginally to 47 million metric tons (MMT) in 2024/25 on expected recovery from extreme weather in 2023. The mandatory biodiesel program continues to absorb significant domestic palm oil consumption, limiting exportable volumes. Feed industry growth pushed soybean meal use up to 5.8 MMT in 2024/25.
Oilseeds and Products Update
ID2024-0003
Post revised down Indonesia palm oil exports estimate to 27.9 million metric ton (MMT) on lower supplies, higher domestic use and expected reduced export demand for 2023/24. Palm oil use for the biodiesel industry is revised down to 12.3 MMT for 2023/24 on lower-than-expected biodiesel distribution in 2023. Soybean meal use is estimated to increase 2 percent to 5.65 MMT in 2023/24 from the previous year on improved feed millers’ performance.