Indonesia’s palm oil production is projected to grow 3% in 2026/27, according to USDA projections.

Indonesia's palm oil production is expected to reach 48 million tons in the 2026/27 season, according to a new report from the attaché. United States Department of Agriculture (USDA) in the Asian country. The volume represents a 3% increase compared to the 46.7 million tons estimated for 2025/26. According to the USDAThe expansion of production will be driven primarily by the maturity of planted areas between 2021 and 2024 and the adoption of improved seeds with greater yield potential. Despite the expected growth, the USDA It is noted that production growth may be partially limited by adverse weather conditions forecast for 2026. The Indonesian meteorological agency, BMKG, projects an early start to the dry season, with below-average rainfall and a prolonged period of intense heat and drought in several producing regions. Indonesia's domestic consumption of palm oil is expected to reach 23.1 million tons in 2026/27, up 2% from the 22.7 million tons projected for 2025/26. This growth is supported by the mandatory B40 biodiesel program, which maintains a blend of 40% palm biodiesel and 60% fossil diesel. The government decided not to implement the B50 program nationally this year, although it continues to conduct tests and studies on economic viability. In the international market, the USDA Indonesia projects that palm oil exports will reach 25 million tons in 2026/27, a 4% increase compared to the previous season. Demand remains supported mainly by major importers such as China and South Asian countries, especially India.

This text was translated by machine from Brazilian Portuguese.