Datetime: 2025-12-31 05:56:54 Visit: 4563
Analysts anticipate a favorable year for palm oil producers in 2026, with projected growth in both output and market prices.
Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, stated on Thursday that Indonesia's palm oil sector is poised for a positive trajectory in 2026, despite navigating global and domestic headwinds.
The Indonesian Palm Oil Producers Association (Gapki) notes sustained robust global demand, particularly in Asian, Middle Eastern, and African markets. However, the EU Anti-Deforestation Regulation (EUDR) continues to pose challenges.
As the world's leading supplier of crude palm oil (CPO), Indonesia is expected to expand production in 2025–2026, supported by ongoing replanting initiatives.
"We forecast that total palm oil production-encompassing CPO and palm kernel oil (PKO)-will rebound after a 2024 decline, rising approximately 10% in 2025 and an additional 4–5% in 2026," Demus explained. "This growth stems from enhanced crop yields and favorable climatic conditions."
