As indicated in the latest market research report published by IMARC Group, titled "Indonesia Palm Oil Market Report by Packaging Type (Pouches, Jars, Cans, Bottles), Packaging Material (Metal, Plastic, Paper, Others), Pack Size (Less Than 1 Liters, 1 Liters, 1 Liters – 5 Liters, 5 Liters – 10 Liters, 10 Liters and Above), Application (Household Cooking, Horeca, Food Processing Industry, Oleo Chemicals, Personal Care Products, Animal Feed, Biofuels, Others), Distribution Channel (Direct/institutional Sales, Supermarkets and Hypermarkets, Convenience Stores, Online, Others), and Region 2025-2033," the report presents a thorough review featuring the Indonesia palm oil market share, growth, outlook, trends, and research of the industry.
Market Size & Future Growth Potential:
The Indonesia palm oil market size was valued at USD 10.8 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 13.6 Billion by 2033, exhibiting a growth rate (CAGR) of 2.47% during 2025-2033.
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Recent News and Developments:
- Government Policy Initiatives: Indonesia has simplified palm oil export levies in response to decreasing crude palm oil (CPO) exports, reducing most export levies to between 3% to 7.5% of the reference price. However, the government also increased the palm oil export tax by 10% in 2025 to support domestic biodiesel programs and infrastructure development.
- B40 Biodiesel Implementation: The Indonesian government is actively implementing the B40 biodiesel program, which mandates 40% palm oil blending in diesel fuel. Trials are expected to be completed by December 2025, with full implementation potentially increasing biodiesel consumption to 16 million kiloliters in 2026 from 13 million kiloliters in 2024.
- Export Performance: Indonesian palm oil exports showed strong performance in early 2025, with approximately 8.3 million tons exported in the first five months, representing a 3.6% year-over-year increase. Key export destinations include Singapore (USD 894.2 million), India (USD 410.03 million), and Pakistan (USD 260.63 million).
- Sustainability Developments: Major palm oil companies are increasing their RSPO certification compliance, with companies like PT Sumber Indahperkasa receiving RSPO certificates for their Lampung mill operations in 2024. The industry is also implementing 100% mill traceability systems to meet European Union Deforestation Regulation (EUDR) requirements.
- Legal and Environmental Updates: Indonesian courts have blocked several palm oil expansion projects to protect rainforest areas, including a December 2024 ruling that spared 65,415 hectares of rainforest from the Tanah Merah mega plantation project, reflecting increased environmental scrutiny in the sector.
Latest Market Trends:
The Indonesia Palm Oil Market is undergoing dynamic transformation as global demand shifts toward sustainable sourcing, improved traceability, and value-added palm oil products. One of the strongest trends shaping the sector is the rising adoption of certified sustainable palm oil (CSPO), driven by increasing pressure from international buyers, environmental groups, and global food brands seeking ethically produced oils. Moreover, plantation companies are investing in digital monitoring tools, satellite imaging, and drone-based land management to enhance productivity while reducing environmental risks. Additionally, downstream diversification is gaining traction, with palm oil increasingly used in oleochemicals, bio-based lubricants, personal care formulations, and specialty food ingredients.
In addition, the rapid growth of renewable energy initiatives is fueling interest in palm oil-based biofuels, including biodiesel blends supported by national energy policies. Smallholder inclusion is also a key trend, as major producers expand training programs, certification support, and digital payment systems to build transparent supply chains. Furthermore, innovations such as yield-boosting plant varieties, precision agriculture, and climate-resilient farming practices are helping the industry optimize output. Together, these emerging trends highlight a market moving toward sustainability-focused, technology-enabled, and diversified palm oil production across Indonesia.
Market Scope and Growth Factors:
The Indonesia Palm Oil Market continues to expand steadily due to strong domestic consumption, rising global demand, and Indonesia’s position as the world’s leading palm oil producer. The country’s large-scale plantations and favorable climate contribute to high output efficiency, driving export competitiveness in regions such as Europe, India, China, and the Middle East. Moreover, supportive government policies encouraging downstream processing, biodiesel blending, and export readiness are strengthening market foundations. Additionally, rapid growth in the food processing, packaged goods, and personal care industries is increasing the use of refined, bleached, and deodorized (RBD) palm oil across both domestic and international markets.
In addition, expanding industrial applications—ranging from detergents and pharmaceuticals to cosmetics and specialty chemicals—continue to drive demand for palm-based derivatives. Investments in port infrastructure, logistics, and processing facilities are further enhancing Indonesia’s ability to meet global supply requirements efficiently. Furthermore, the involvement of foreign investors and joint ventures is helping local producers adopt advanced technologies, improve sustainability standards, and expand global outreach. Together, these growth drivers ensure that the Indonesia Palm Oil Market remains on a strong upward trajectory—supported by economic scale, policy backing, and Indonesia’s established role in the global edible oil industry.
Explore the Full Report with Charts, Table of Contents, and List of Figures: https://www.imarcgroup.com/indonesia-palm-oil-market
Major Companies Covered:
- Asian Agri
- Astra Agro Lestari (Astra International)
- Bumitama Agri Ltd.
- Permata Group
- PT Dharma Satya Nusantara Tbk
- PT Salim Ivomas Pratama Tbk
- PT. Bakrie Sumatera Plantations Tbk (Bakrie Group)
- PT. Mahkota Group Tbk
Indonesia Palm Oil Market Outlook, Highlights & Segmentation Analysis:
The market report offers a comprehensive analysis of the segments, highlighting those with the largest Indonesia Palm Oil Market Share. It includes forecasts for the period 2025-2033 and historical data from 2019-2024 for the following segments.
Segmentation by Packaging Type:
- Pouches
- Jars
- Cans
- Bottles
Segmentation by Packaging Material:
- Metal
- Plastic
- Paper
- Others
Segmentation by Pack Size:
- Less Than 1 Liters
- 1 Liters
- 1 Liters – 5 Liters
- 5 Liters – 10 Liters
- 10 Liters and Above
Segmentation by Application:
- Household Cooking
- Horeca
- Food Processing Industry
- Oleo Chemicals
- Personal Care Products
- Animal Feed
- Biofuels
- Others
Segmentation by Distribution Channel:
- Direct/institutional Sales
- Supermarkets and Hypermarkets
- Convenience Stores
- Online
- Others
Segmentation by Region:
- Java
- Sumatra
- Kalimantan
- Sulawesi
- Others
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Key highlights of the Report:
- Historical Market Performance
- Future Market Projections
- Impact of COVID-19 on Market Dynamics
- Industry Competitive Analysis (Porter's Five Forces)
- Market Dynamics and Growth Drivers
- SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)
- Market Ecosystem and Value Creation Framework
- Competitive Positioning and Benchmarking Strategies
Major Advantages of the Report:
- This report provides market leaders and new entrants with accurate revenue estimates for the overall market and its key subsegments.
- Stakeholders can leverage this report to gain a deeper understanding of the competitive landscape, enabling them to strategically position their businesses and develop effective go-to-market strategies.
- The report provides stakeholders with valuable insights into the market dynamics, offering a comprehensive analysis of key drivers, restraints, challenges, and opportunities.
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