Indonesia's Palm Oil Exports: Asia is a Key Market

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Adi Ahdiat 15/04/2025 18:07 WIB

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According to BPS data, in 2024 the United States (US) was Indonesia's fourth largest export destination for palm oil.

Indonesia's Top 10 Palm Oil Export Destinations (2024)

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Indonesia's Top 10 Palm Oil Export Destinations (2024)

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According to data from the Central Bureau of Statistics (BPS), Indonesia's palm oil exports in 2024 reached US$22.87 billion.

India was the largest market, with a value of US$3.91 billion, equivalent to 17% of total national exports.

Other countries classified as major markets for Indonesian palm oil exports are China, Pakistan, and the United States (US).

Then there are Bangladesh, Egypt, Russia, Vietnam, Malaysia, and Myanmar, with export values as shown in the graph.

The Indonesian Palm Oil Entrepreneurs Association (Gapki) is now urging the government to create a special policy regarding the export of crude palm oil (CPO) to the US.

This is because, starting in 2025, the US plans to implement trade barriers in the form of a 32% import tariff on products from Indonesia.

"Even if CPO exports to the US decline, it shouldn't be too significant, or perhaps they will stagnate. However, the government must do something to prevent the loss of the national CPO market in the Land of the Free," said Gapki Chairman Edi Martono, as reported by *Katadata.co.id*, Tuesday (15/4/2025).

According to Edi, the demand for CPO in the US is difficult to reduce, because the role of CPO as an industrial raw material is difficult to replace with other materials.

However, Edi believes that Indonesia's CPO market share in the US is potentially threatened by Malaysia, because the US imposes a 24% import tariff on products from Malaysia. Therefore, the price of Malaysian CPO in the US could be cheaper than Indonesian CPO.

Edi also suggested that the Indonesian government reduce export burdens for this commodity.

"If the export burden for Indonesian CPO can be lower than Malaysia's, it would be excellent, this is specifically for the US market," said Edi.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesia's Palm Oil Exports: Asia is a Key Market

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