Jakarta: Exports of palm oil from Indonesia have posted strong growth in early 2026, even as the industry braces for potential pressure from a higher biodiesel blending mandate, Jakarta Globe.Id reported.
Data from the Central Statistics Agency showed that exports of crude palm oil (CPO) and its derivatives reached $4.69 billion in January–February 2026, up 26.4 per cent from $3.71 billion in the same period last year. In volume terms, shipments rose 36.26 per cent to 4.54 million tonnes, compared to 3.33 million tonnes a year ago.
In February alone, exports stood at $2.40 billion, with volumes reaching 2.30 million tonnes, according to BPS deputy Ateng Hartono.
The strong performance has helped Indonesia maintain a trade surplus for 70 consecutive months since May 2020. The surplus widened to $1.27 billion in February, up from $950 million in January.
However, industry concerns are rising over stagnant production levels at a time when the government plans to increase the mandatory palm oil blend in diesel from 40 per cent to 50 per cent, known as the B50 programme.
The Indonesian Palm Oil Association has cautioned that diverting more palm oil towards biodiesel without boosting output could reduce export volumes and strain funding for the programme, which is supported through export levies.
Gapki chairman Eddy Martono said current production levels are not growing, and increasing the blending mandate without improving productivity could hurt exports.
The government has announced plans to roll out the B50 programme in July, as part of efforts to manage energy challenges and reduce reliance on imported fuels. Senior minister Airlangga Hartarto said the move could save up to Rp 48 trillion ($2.8 billion) in fuel subsidies, while reducing fossil fuel consumption by 4 million kilolitres.
State energy firm Pertamina is prepared to implement the higher blending mandate, officials said.
Indonesia’s palm oil is widely exported to major markets including China, India and Pakistan, making the balance between domestic use and exports a key issue for the industry going forward.
