Indonesia’s 2027 palm oil output, exports seen shrinking due to dry weather, domestic demand

JAKARTA: Indonesia’s palm oil production next year is expected to be affected by El Niño dry weather, while exports are estimated to drop nearly 15 percent amid higher domestic demand, palm oil group GAPKI said on Friday.

Crude palm oil output by the world’s top producer is estimated at 51.7 million metric tons in 2027, down from an estimated 53.7 million tons seen this year, GAPKI official Hadi Sugeng Wahyudiono told reporters. Production next year will be affected by the El Niño weather pattern taking place this year, GAPKI chairman Eddy Martono said at the same press briefing.

He said the projected 2027 production represents around 5 percent lower volume versus its potential production without El Niño disruption. The El Niño weather phenomenon has caused prolonged drought in Indonesia and exacerbated wildfires.