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Key takeaways:
This was an increase of 52%, or 896,024 tonnes, from 1.73 million tonnes in November and marks an 18-month high in exports based on ITS data, with Indonesian exports becoming more attractive after a drop in taxes and improved competitiveness of palm oil with rival oils.
The rise in shipments was led by India and the subcontinent, with volumes to the region more than doubling to 916,341 tonnes from 398,162 tonnes in November, with close to half of the exports headed to India.
Indonesia exported 421,826 tonnes of palm oil to India in December, a sharp increase after exports in November were at a mere 65,900 tonnes.
Exports to India comprised mainly of crude palm oil (CPO) at 345,800 tonnes, a jump of 315,500 tonnes from 30,300 tonnes in November, while exports of refined bleached deodorized (RBD) olein also rose to 45,000 tonnes from 6,200 tonnes the previous month.
Elsewhere, Indonesia’s exports to Pakistan also rose by 128,277 tonnes from November to 365,965 tonnes in December, with volumes consisting mostly of RBD palm olein at 220,490 tonnes and RBD palm oil at 140,475 tonnes.
Palm oil exports from Indonesia to Bangladesh also rose in December to 125,550 tonnes from 94,574 tonnes the previous month, with the volume consisting solely of RBD palm olein.
Indonesia also shipped more palm oil to the African continent in December, with volumes at 181,740 tonnes, up by 126,032 tonnes from November, with nearly 60% of the exports headed to Kenya with 65,100 tonnes and South Africa, with 39,800 tonnes.
Similarly, exports to other markets such as China, the EU, the Americas and Asia Oceania rose in December, except for the Middle East where shipments fell by 17,816 tonnes to 255,419 tonnes due to a drop in exports to Saudi Arabia and the UAE.
This was also despite a jump in shipments to Egypt with exports up by 45,375 tonnes from November to 114,500 tonnes and most of the volume consisting of RBD palm olein, with 34,210 tonnes, and RBD palm oil, with 68,070 tonnes.
For Saudi Arabia and the UAE, the drop in volumes stemmed primarily from lower RBD palm oil exports, with combined shipments of RBD palm oil to the two countries at 15,905 tonnes in December, down by 48,534 tonnes from 64,439 tonnes in November.
The jump in Indonesia’s palm oil exports in December follows a drop in the December CPO reference price, which resulted in combined export taxes for CPO falling by around $54 per tonne from November, while taxes for RBD palm olein fell by $48 per tonne. This lent a boost to Indonesia’s price competitiveness against neighboring producer Malaysia, with December-shipment Indonesian RBD palm olein averaging around $23 lower compared with its Malaysian counterpart on an FOB basis, according to Fastmarkets’ assessments. Sellers who anticipated the reduction in export taxes had also shifted shipments from November to December, contributing to the sharp increase.
Palm oil was also generally trading lower compared to its nearest rival soybean oil which help to improve its attractiveness, with the spread for December-shipment CPO and soybean oil to India averaging at $71 per tonne, based on Fastmarkets’ assessments, widening from $50 per tonne for November-shipment volumes.
Nonetheless, despite the large jump in December exports, total palm oil exports in 2025 were just slightly higher compared with the previous year at 24.35 million tonnes, 1.9% more than the 23.896 million tonnes exported in 2024, according to ITS data.
Shipments to the EU, India and the subcontinent and the Americas fell on the year, with higher exports to Africa, Asia Oceania, China and the Middle East cushioning the drop.
In terms of product type, Indonesia exported less CPO and RBD palm oil in 2025 compared with 2024, with CPO volumes at 2.24 million tonnes, down by 295,488 tonnes and RBD palm oil exports at 4.73 million tonnes, down by 225,773 tonnes.
Exports of palm fatty acid distillate (PFAD) rose to 1.09 million tonnes, a 46% year on year increase, while those of RBD palm olein rose to 10.1 million tonnes, marking a 7.4% increase from 2024 levels.
China remained the largest RBD palm olein destination market for Indonesia with volumes at 2.02 million tonnes, up from 1.84 million tonnes in 2024, while Malaysia received the most PFAD from Indonesia at 274,783 tonnes, up by 112,433 tonnes from 162,350 tonnes the preceding year.
Lastly, Indonesia also exported 37,690 tonnes of coconut oil in December according to ITS figures, an increase of 15,014 tonnes from 22,946 tonnes in November, with total coconut oil exports in 2025 reaching 396,993 tonnes, slightly lower from 400,216 tonnes a year ago.
From fluctuating commodity prices to the intricate supply chain dynamics, the palm oil trade presents challenges that demand accurate pricing and risk management solutions. If you’re navigating this market, gain clarity with Fastmarkets price data.