Palm oil development plan A comparative analysis of palm oil trade and consumption patterns in Indonesia and Malaysia from 2014-2015 to 2023-2024 reveals two distinct national trajectories shaped by policy, market orientation and industrial priorities. Indonesia’s domestic consumption has grown by nearly 150% in the past decade, narrowing the gap with exports, whereas Malaysia consistently exports about twice as much as it consumes domestically.5 In Indonesia (see Figure 2), domestic palm oil consumption has nearly tripled over the past decade – from around 8 MMT in 2014-2015 to over 23 MMT in 2023-2024. This rise is driven by biodiesel mandates (B20 to B40), downstream industry growth and increased demand for food and oleochemicals. Although exports remain high (24-31 MMT annually), they have grown more slowly than domestic use, narrowing the gap between the two. This is driven by a strategic shift towards self- sufficiency, value addition and energy diversification. Rising domestic demand has also driven further palm plantation expansion. In contrast (see Figure 3), Malaysia remains export- oriented. Export volumes have held steady at 16-20 MMT annually, while domestic consumption remains modest at 3-5 MMT. This reflects Malaysia’s continued focus on global markets, backed by strong infrastructure, quality standards and integration with international markets. These trends highlight how Indonesia and Malaysia are responding differently to global and domestic pressures. Indonesia is moving towards a balanced trade and consumption model, driven by rising domestic demand and downstream industry growth, while Malaysia maintains a strong export-oriented strategy. Both countries are adapting to sustainability requirements and traceability expectations, especially as demand for deforestation-free, certified palm oil increases from major importers. Palm oil export and domestic consumption in Indonesia Palm oil export and domestic consumption in MalaysiaFIGURE 2 FIGURE 32014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24Export Domestic consumption Export Domestic consumption1,000 metric tons 1,000 metric tons35,000 30,000 25,000 20,000 15,000 10,000 5, 00010,00015,00020,00025,0005,000 0 02014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24Export Domestic consumption Export Domestic consumption1,000 metric tons 1,000 metric tons35,000 30,000 25,000 20,000 15,000 10,000 5, 00010,00015,00020,00025,0005,000 0 0 Strengthening Indonesia-China Palm Oil Trade with Sustainable Practices 5

Strengthening Indonesia China Palm Oil Trade with Sustainable Practices 2025