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Indonesia's palm oil product exports are projected to reach approximately 35 million metric tons by 2026, according to Chief Economic Minister Airlangga Hartarto. Speaking at an industry conference in Nusa Dua on Thursday, the minister highlighted the sector's robust performance despite emerging climate challenges.
Data for the current year shows that between January and October, Indonesia's palm oil exports reached 33.8 million tons, marking a 6% increase compared to the same period last year. In terms of value, these shipments were worth US$28.84 billion, representing a 16% rise on an annual basis, Hartarto noted.
National production for this year is forecasted to hit around 60 million tons, an increase from the 56.55 million tons recorded in the previous year. The minister attributed this upward trend to government-led replanting initiatives and significant infrastructure investments designed to optimize plantation productivity across the archipelago.
However, the Indonesian Palm Oil Association, commonly known as Gapki, has issued a cautionary outlook. The association warned that the El Niño weather phenomenon could potentially slash production by three million tons. Prolonged droughts linked to the weather pattern have exacerbated wildfires nationwide, with Gapki predicting the most severe impact on yields will be felt in 2027.
Eddy, representing Gapki, emphasized that such climatic shifts lead to sustained productivity losses across multiple seasons. To counter these risks, Gapki has implemented mitigation strategies, including the release of two new pollinator insect species this year and the utilization of wild oil palm seeds to engineer new varieties that are more resilient to drought conditions.
Source: The Edge Malaysia