Lang
China's appetite for Indonesian palm oil surged sharply in the first half of 2026, with shipments rising 31% year-on-year, according to data from the Indonesian Palm Oil Association (GAPKI). The upward momentum accelerated in June, when exports to China jumped 67% compared with May.
Indonesia's overall palm oil and palm oil product exports reached nearly 3.3 million tons in June, pushing cumulative January-June shipments to approximately 16.6 million tons. China remains one of the key destinations for Indonesian palm oil, with the commodity primarily channeled into food processing and consumer goods manufacturing.
Processed palm oil accounted for the bulk of Indonesia's export volumes, with shipments totaling around 2.3 million tons in June and nearly 11.8 million tons across the first half of the year. Indonesia's palm oil export revenues reached $3.9 billion in June and at least $19.4 billion during the January-June period.
Shipments to India, another major buyer of Indonesian palm oil, also recorded a sharp monthly surge in June, rising 396% from May. However, this steep monthly increase has not yet reversed the broader trend, as India's cumulative imports in the first half of 2026 remained 7% below the previous year's level.
China therefore demonstrates a more sustained expansion in demand for Indonesian palm oil. Growing purchases by one of the world's largest vegetable oil importers are providing important structural support to Indonesia's export performance, while the Indian rebound, despite its sharp monthly spike, has so far remained primarily a month-on-month development rather than a year-on-year recovery.
Source: UkrAgroConsult