Jakarta. Indonesia’s palm oil industry expects export earnings to rise significantly this year, supported by strong shipment volumes, higher global prices, and the sharp depreciation of the rupiah against the US dollar.

The industry generated $35.87 billion in export revenue in 2025 and believes that figure could be surpassed in 2026 as currency movements improve returns for exporters.

According to data from the Indonesian Palm Oil Association (Gapki), palm oil export revenue rose 10.4% year-on-year to $9.66 billion in the first quarter of 2026, compared with $8.75 billion in the same period a year earlier.

The increase was driven by both higher export volumes and stronger prices. Average palm oil prices reached $1,356 per ton during the January-March period, up from $1,230 per ton in the first quarter of 2025.

“The rupiah’s depreciation is also a blessing. In 2025, around $35 billion in exports translated into about Rp 590 trillion at an exchange rate of roughly Rp 16,000 per dollar. Now, with the exchange rate above Rp 17,000, the value will be even higher,” said Aziz Hidayat, head of plantation affairs at the Indonesian Palm Oil Association.

Industry data show that Indonesia produced 15.56 million tons of palm oil in the first quarter of 2026, up 18.44% from 13.13 million tons in the same period last year.

During the quarter, crude palm oil export volumes increased 11.91% to 8.55 million tons from 7.64 million tons a year earlier. Domestic consumption also grew 7.47% to 6.52 million tons, compared with 6.07 million tons in the first quarter of 2025.

The combination of higher production, rising exports, and stronger domestic demand has strengthened industry confidence that 2026 will outperform last year.

Industry executives remain optimistic even as the government prepares to expand its biofuel program through the introduction of B50, which will require diesel fuel to contain a 50% palm oil-based biodiesel blend.

“Performance through March 2026 shows improvement in both production and exports. If this trend continues through December, the industry’s achievements in 2026 will be better than in 2025,” Aziz said.

Indonesia is the world’s largest producer and exporter of palm oil, making the commodity a major source of export earnings and foreign-exchange revenue.