Indonesia palm oil use surges as exports fall


Production challenges: An aerial view shows a truck loaded with oil palm stuck on an unpaved road at a plantation in Langsa, Aceh province. Smallholders manage around 42% of palm oil plantations in Indonesia, many of which are in need of replanting. — AFP

JAKARTA: Almost half of Indonesia’s crude palm oil (CPO) output is now absorbed by the domestic market, as CPO consumption rose to 23.8 million tonnes in 2024 while production fell to 52.7 million tonnes, down from 54.8 million tonnes in 2023, according to the Indonesian Palm Oil Producers Association (Gapki).

“The biodiesel mandate is driving up domestic use, with food consumption followed by energy or biodiesel demand,” Gapki chairman Eddy Martono said on Monday.

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