Lang
Indonesia posted double-digit growth in palm oil exports in the first half of 2025, according to official statistics released on Friday, after Jakarta secured greater access to European Union markets.
Indonesia's Central Statistics Agency (BPS) reported that exports of crude palm oil (CPO) and its derivatives rose 24.81% year-on-year in the first half of 2025, with export value reaching $11.43 billion, up from $9.16 billion in the same period a year earlier.
Indonesia, Southeast Asia's largest economy, exported around 11 million tonnes of palm oil during the six-month period, a year-on-year increase of 2.69%. The country also sold palm oil at an average price of $1,053.03 per tonne through June 2025, up 22.21% from about $861.65 per tonne in the same period of 2024.
"In June 2025 alone, our exports of palm oil and its derivatives totalled $2.53 billion, marking a 36.95% increase compared with May 2025," said Pudji Ismartini, deputy head of the statistics agency, at a press conference in Jakarta.
The statistics agency did not specify which countries topped the list of importers of Indonesian palm oil.
Indonesia's non-oil-and-gas trade surplus stood at $28.31 billion in the first half of 2025, of which about $15.74 billion came from trade in animal or vegetable fats and oils, a category that includes palm oil. This category accounted for the largest share of the trade surplus, followed by mineral fuels ($13.28 billion) and iron and steel ($9.04 billion).
These trade figures come after the government announced that the European Union has become more accommodating towards Indonesian palm oil, despite its concerns over deforestation. According to senior minister Airlangga Hartarto, the EU has agreed to eliminate tariffs on Indonesian palm oil under a forthcoming trade agreement.
Under the deal, the EU will allow Indonesia to export one million tonnes of palm oil annually duty-free once the agreement takes effect. Volumes exceeding this threshold will face higher tariffs of up to 3%. The export quota for palm kernel oil will be determined based on the previous year's export volumes.
The agreement, known as the Comprehensive Economic Partnership Agreement (CEPA), is expected to take effect by the end of 2026 once the necessary ratification procedures are completed.