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View all search resultsIndustry warns severe El Niño could shrink CPO output
GAPKI chairman Eddy Martono said that the significant impact of a severe El Niño on palm oil production could be felt as early as next year.
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Workers unload fresh fruit bunches on Oct. 29, 2025, from an open-back truck at a collector in Palangka Raya, Central Kalimantan. The Indonesian Palm Oil Association (GAPKI) recorded a 15 percent increase in Indonesian palm oil exports through August 2025, from 19.68 million tonnes in the same period last year to 22.69 million tonnes, due to improved production this year and market adjustments to crude palm oil (CPO) prices, which had been high the previous year. (Antara/Auliya Rahman)
T
he Indonesian Palm Oil Producers Association (GAPKI) has projected that extreme El Niño could potentially reduce crude palm oil (CPO) output by up to 5 million tonnes.
GAPKI chairman Eddy Martono said that the significant impact of a severe El Niño on palm oil production could be felt as early as next year.
Meanwhile, the rollout of a mandatory increase in palm-based biodiesel to a 50 percent blend from 40 percent is expected to increase domestic CPO absorption and reduce CPO supply for export markets.
However, Eddy stressed that ensuring palm oil supply for domestic use remained the top priority.
“Supply for domestic use is prioritized, so there will be no problems with domestic demand. What will decline is export volumes,” he said on Tuesday, as quoted by Bisnis.
The association previously estimated that the B50 implementation could lift domestic CPO consumption for biodiesel to between 16.3 million and 17 million tonnes annually. Producers expect national CPO output of around 53 million tonnes in 2026, which should leave enough supply to fulfill the higher domestic demand for fuel.
Read also: B50 rollout requires more CPO output, industry warns
