Jakarta. Indonesia’s palm oil exports grew at a slower pace of 7.32% in the first half of 2026, compared to the previous year, as the country braces for the impact of the newly introduced B50 biodiesel rule.

Official statistics agency BPS revealed that palm oil exports rose to $12.27 billion in January-June 2026, versus the $11.43 billion seen in H1 2025. Despite the uptrend, BPS deputy Ateng Hartono revealed that Indonesia enjoyed a double-digit expansion in palm oil commerce last year, without going into details about what had led to the shifts.

“We saw a 24.80% growth for palm oil exports in the first half of 2025, … so yes, the shipments have slowed this year,” Ateng told a briefing on Monday.

Export volume slightly rose by 2.50% to 11.28 million tons over the same period. For June alone, shipments of crude palm oil fell 0.39% year-on-year (yoy) to $393.7 million. They only weighed 335,400 tons, down 19.78% yoy.

Indonesia officially raised the mandatory palm oil blend from 40% to 50% at the pump last month, hence the name B50. Given the timeline, the latest reading had not reflected the impact of the B50 biodiesel rollout, as the move is expected to see producers shifting some of their export-bound output. Ateng cautioned of B50’s possible impact on shipment volumes.

“But we will have to wait for the next data publication. We need to take into account many variables, be it production, supplies, and the increase in domestic demand, not to mention the prices, be it at home or international markets,” Ateng said.

Palm oil producers group Gapki has forecasted 1.9 million tons in additional demand from the B50 policy. Indonesia will likely need around 14.6 million tons of crude palm oil to run the B50 program. While local plantations can still meet the growing orders, export risks loom large. Gapki forecasted “quite a significant drop” in export volumes following the B50-induced domestic consumption hike. Exports will likely fall if production remains stuck at current levels. 

The Prabowo Subianto administration is also treating the B50 policy as a silver bullet to Indonesia’s oil import reliance. Indonesia registered a 105.15% yoy growth in oil and gas imports in June 2026, driven up by Singaporean and Malaysian energy purchases. 

Indonesia makes up the biggest chunk of the world’s palm oil supplies. Businesses across the globe use palm oil to produce an array of products, including everyday items like soap and baked goods.

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