Indonesia Fatty Acids HS3823 Export Data 2025 August Overview

China dominates Indonesia's Fatty Acids (HS Code 3823) export in August 2025, holding 41.96% of value and 40.40% of weight, highlighting supply chain concentration risks and regional demand patterns.

Indonesia Fatty Acids (HS 3823) 2025 August Export: Key Takeaways

China dominates Indonesia's Fatty Acids HS Code 3823 Export in August 2025, accounting for 41.96% of value and 40.40% of weight, signaling both high-grade demand and supply chain concentration risk. The market shows stable regional clustering, with China and Malaysia as primary buyers, while India and Europe serve secondary processing hubs. This analysis covers August 2025 and is based on cleanly processed Customs data from the yTrade database.

Indonesia Fatty Acids (HS 3823) 2025 August Export Background

Indonesia’s Fatty Acids (HS Code 3823)—industrial monocarboxylic fatty acids, acid oils from refining, and industrial fatty alcohols—are key for biofuels, soaps, and food processing, driving steady global demand. In 2025, Indonesia tightened export policies, raising levies on palm derivatives like HS Code 3823 under Ministry of Finance Regulation No. 30/2025 [FAS USDA], reinforcing its role as a top supplier. By August 2025, these changes aimed to balance domestic needs and export revenue, shaping trade flows for this critical commodity.

Indonesia Fatty Acids (HS 3823) 2025 August Export: Trend Summary

Key Observations

Indonesia Fatty Acids HS Code 3823 Export 2025 August experienced a month-over-month decline in both volume and value, with unit prices holding steady at 1.24 USD/kg, mirroring July's levels amidst policy-driven market adjustments.

Price and Volume Dynamics

Month-over-month, August volumes dropped by approximately 4.5% to 494.67 million kg from July's peak, while values fell by 4.1% to 613.97 million USD, despite stable pricing. This deviation from the typical upward trend in palm derivatives exports during mid-year, often driven by seasonal stock cycles and industrial demand, suggests external pressures outweighing inherent industry momentum. The consistency in unit prices since June indicates a market adapting to supply shifts rather than fundamental demand changes.

External Context and Outlook

The observed volume contraction in August aligns with Indonesia's policy changes, including export levy hikes in May 2025 [USDA] and temporary duty increases effective August 1, 2025 (Global Trade Alert), which raised costs and likely deterred shipments. Looking forward, exports are expected to remain volatile, influenced by ongoing regulatory adjustments and global biofuel feedstock demands, as highlighted in broader palm industry reports (Argus Media).

Indonesia Fatty Acids (HS 3823) 2025 August Export: HS Code Breakdown

Product Specialization and Concentration

In August 2025, Indonesia's export of Fatty Acids under HS Code 3823 is heavily concentrated, with the sub-code 38231920 for industrial monocarboxylic fatty acids and acid oils from refining dominating the market. This product accounts for about 25% of the total export value and 35% of the weight, with a unit price of 0.90 USD per kilogram, indicating it is a high-volume, low-cost bulk item. A minor outlier is HS Code 38231300 for tall oil fatty acids, which has a very small share and a higher unit price of 1.92 USD per kilogram, but it is isolated from the main analysis due to its negligible impact.

Value-Chain Structure and Grade Analysis

The remaining sub-codes fall into three groups: general industrial fatty acids like 38231990 and 38231919, specific acid types such as stearic acid (38231100) and oleic acid (38231200), and fatty alcohols including 38237090. Unit prices range from 0.90 to 2.37 USD per kilogram, showing a mix of bulk commodities and more refined products. This structure suggests that Indonesia's Fatty Acids export under HS Code 3823 is not purely fungible; instead, it involves differentiated goods with varying grades and value-add stages, from basic acids to higher-value alcohols.

Strategic Implication and Pricing Power

For market players, pricing power is likely stronger for specialized products like fatty alcohols, which command higher unit prices, while bulk acids face more competitive pressure. The recent increase in export levies on palm products [USDA] could raise costs for these exports, urging Indonesian exporters to focus on value-added items to maintain profitability. Strategic emphasis should be on diversifying into higher-margin segments within the Indonesia Fatty Acids HS Code 3823 Export 2025 August framework.

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Indonesia Fatty Acids (HS 3823) 2025 August Export: Market Concentration

Geographic Concentration and Dominant Role

In August 2025, China is the top importer of Indonesia Fatty Acids HS Code 3823 Export, with a 41.96% share of value and 40.40% share of weight, indicating its dominant role. The slightly higher value ratio compared to weight ratio suggests China may be buying higher-grade products, as Fatty Acids are a commodity where price often reflects quality. This pattern points to China's strong demand for quality inputs in its manufacturing sector.

Partner Countries Clusters and Underlying Causes

The importers form three clear clusters based on trade data. First, China and Malaysia show high volume and value, likely due to their proximity to Indonesia and heavy use in food and industrial sectors. Second, India, South Korea, Singapore, and Netherlands have moderate imports, possibly for processing or re-export to other markets. Third, the United States, Italy, Thailand, and Philippines have smaller but steady purchases, reflecting diverse global demand for these essential inputs.

Forward Strategy and Supply Chain Implications

Market players should monitor Indonesia's export policies closely, as recent levy increases [USDA Report] could raise costs and disrupt supply chains. To mitigate risks, buyers might diversify sources or lock in contracts early. The high concentration in China also suggests a need for alternative markets to avoid over-reliance on one partner.

CountryValueQuantityFrequencyWeight
CHINA MAINLAND257.65M125.62M627.00199.84M
MALAYSIA78.31M48.63M102.0052.30M
INDIA37.13M21.06M195.0029.79M
SOUTH KOREA32.92M29.11M277.0036.37M
SINGAPORE32.25M33.92M48.0034.49M
NETHERLANDS************************

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Indonesia Fatty Acids (HS 3823) 2025 August Export: Buyer Cluster

Buyer Market Concentration and Dominance

The Indonesia Fatty Acids Export 2025 August under HS Code 3823 shows a highly concentrated buyer market. One segment of buyers dominates, accounting for 96.11% of the total export value. These buyers place orders very frequently and in large volumes, making them the core of the trade. The median trade involves high-value, high-frequency transactions, indicating a market driven by consistent, bulk purchases.

Strategic Buyer Clusters and Trade Role

The other three segments of buyers play smaller but distinct roles. Buyers who place large orders but less often contribute 1.90% of the value, likely representing processors or manufacturers with periodic bulk needs. Another group places smaller orders very frequently, accounting for 1.32% of value, which typically includes distributors or regular end-users. The smallest segment, with infrequent small orders (0.67% of value), consists of occasional or spot buyers, possibly testing the market or fulfilling one-off needs.

Sales Strategy and Vulnerability

For Indonesian exporters, the strategy must focus on maintaining strong relationships with the dominant bulk buyers, as they drive nearly all revenue. The high dependence on this single segment creates vulnerability to demand shifts or policy changes. Recent regulatory changes, including increased export levies on palm products [USDA] and temporary duty hikes (Global Trade Alert), could impact cost structures and buyer behavior. Diversifying into the smaller, higher-frequency buyer segments may offer stability against market or policy shocks.

Buyer CompanyValueQuantityFrequencyWeight
PT. WILMAR NABATI INDONESIA70.44M44.00M159.0044.00M
MUSIM MAS60.77M38.69M503.0047.14M
ENERGI SEJAHTERA MAS54.41M24.43K84.0024.43M
ECOGREEN OLEOCHEMICALS************************

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Indonesia Fatty Acids (HS 3823) 2025 August Export: Action Plan for Fatty Acids Market Expansion

Strategic Supply Chain Overview

Indonesia Fatty Acids Export 2025 August under HS Code 3823 is a commodity market. Price is driven by product grade and geopolitical risk. Bulk industrial acids trade at lower prices. Specialized products like fatty alcohols command premiums. Recent Indonesian palm export levy hikes increase costs. Supply chains face concentration risks. China dominates as a buyer. High-volume buyers drive 96% of trade. This creates vulnerability to demand shifts or policy changes. Supply security depends on stable trade flows and processing hub roles.

Action Plan: Data-Driven Steps for Fatty Acids Market Execution

  • Track HS Code 3823 sub-category unit prices weekly. This identifies premium product opportunities to boost margins.
  • Analyze buyer order frequency for the dominant segment. Use this to forecast demand and avoid stockouts or overstock.
  • Monitor China's import patterns and policy alerts. Diversify to secondary markets like India or South Korea to reduce reliance.
  • Negotiate long-term contracts with high-frequency bulk buyers. Lock in volumes early to hedge against levy-driven cost increases.
  • Use trade data to identify potential new buyers in smaller, stable segments. Build a resilient customer base beyond the core market.

Summary: Leveraging Data for Competitive Advantage

Traditional market analysis misses key details. It overlooks sub-component mix and individual buyer behavior. Indonesia Fatty Acids Export 2025 August requires granular HS Code 3823 data. This reveals true product value and buyer risks. Data-driven actions protect profitability. They turn supply chain vulnerabilities into strategic opportunities.

Take Action Now —— Explore Indonesia Fatty Acids Export Data

Frequently Asked Questions

Q1. What is driving the recent changes in Indonesia Fatty Acids Export 2025 August?

August 2025 saw a 4.5% drop in volume and 4.1% decline in value due to Indonesia's export levy hikes and temporary duty increases, which raised costs and disrupted shipments. Stable unit prices suggest market adaptation to supply shifts rather than demand changes.

Q2. Who are the main partner countries in this Indonesia Fatty Acids Export 2025 August?

China dominates with 41.96% of export value, followed by Malaysia, while India, South Korea, Singapore, and Netherlands form a secondary cluster. The U.S. and others have smaller but steady shares.

Q3. Why does the unit price differ across Indonesia Fatty Acids Export 2025 August partner countries?

Prices vary by product grade: bulk industrial acids (e.g., 38231920) average $0.90/kg, while specialized products like fatty alcohols (38237090) reach $2.37/kg. China’s slightly higher value-to-weight ratio hints at premium purchases.

Q4. What should exporters in Indonesia focus on in the current Fatty Acids export market?

Exporters must prioritize relationships with dominant bulk buyers (96.11% of value) while diversifying into higher-margin segments like fatty alcohols to offset levy-driven cost pressures.

Q5. What does this Indonesia Fatty Acids export pattern mean for buyers in partner countries?

Buyers face reliance risks due to China’s 42% market share and Indonesia’s policy volatility. Bulk purchasers should secure contracts early, while smaller buyers may find niche opportunities in specialized grades.

Q6. How is Fatty Acids typically used in this trade flow?

Fatty Acids serve as industrial inputs, ranging from bulk commodities (e.g., acid oils for refining) to refined products like stearic acid for manufacturing and fatty alcohols for higher-value applications.

Q7. What is yTrade?

yTrade is a global trade data platform that provides SaaS and API access to provide accurate, structured, and searchable import-export trade data for international business decisions. It enables users to access verified shipment records, analyse buyer and supplier activity, review company trade overviews, assess compliance risks, and monitor real market demand — all from a single, scalable system.

Q8. How can yTrade benefit my business?

yTrade helps businesses:

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Q9. What features does yTrade offer?

yTrade provides practical, trade-focused tools including:

  • Global shipment search by HS code, product, company name, port, or country
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