Jakarta. Indonesia recorded a double-digit decline in its palm oil exports in April as European countries cut back on Jakarta’s top agricultural commodity, according to the producers association Gapki on Tuesday.

Indonesia only exported around 1.78 million tons of palm oil products in April, down 39.2 percent after it hit 2.88 million tons overseas the previous month. Gapki reported that processed palm oil exports fell 41.7 percent from 2.13 million tons to 1.24 million tons over the same period, making it the steepest decline among the different product categories. Oleochemical exports dropped 9.6 percent, only reaching 368,000 tons in April. Overall exports also went down 37 percent in dollar terms to $2.07 billion.

From a destination standpoint, the biggest decline in April exports came from the palm oil products that were going to the European Union (EU) market. Gapki did not say why the EU-bound export had gone down by 156,000 tons compared to March figures, although the European bloc’s relations with Jakarta have met some obstacles over palm oil-related deforestation concerns. Followed by India (-155,000 tons), the US (-113,000 tons), and Pakistan (-109,000 tons).

“There is also an 86,000 ton [month-on-month] decline in our palm oil exports to Bangladesh,” Gapki’s executive director Mukti Sardjono was quoted as saying in the press statement.

Southeast Asia’s largest economy had shipped about 9.42 million tons of palm oil overseas for sale in January-April 2025. Volume-wise, the four-month exports fell 3.08 percent year-on-year (yoy). EU-bound exports also plummeted 62 percent, down by 818,000 tons.

However, Indonesia managed to make more money in its palm oil trade. Its overall palm oil export value rose 30.2 percent yoy from $8.31 billion to almost $10.82 billion so far this year as of April. Gapki attributed the increase to the rising average crude palm oil (CPO) price, which stood at $1,183/ton (CIF Rotterdam) over the same period.

“CPO prices used to average at around $1,001/ton [CIF Rotterdam] back in January-April 2024,” Mukti said.

The EU’s anti-deforestation regulation, popularly known by its acronym EUDR, has put pressure on Indonesia’s ties with the group. This now-postponed policy will require operators to prove that their palm oil products do not come from deforested land. The rules will begin to apply for large and medium-sized companies starting at the end of this year, while smaller enterprises have time until June 30, 2026. Senior minister Airlangga Hartarto recently claimed that Europe had agreed to give special treatment to Indonesian palm oil as both sides neared the conclusion of their long-awaited trade pact.

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