2025 Indonesia Margarine (HS 1517) Export: Volatile Growth

Key Takeaways

Margarine, classified under HS Code 1517 (Margarine; edible oils, fats or products made by mixing various animal and vegetable oils, fats and their separated products in this chapter, except for the edible oils, fats and their separated products of heading 15.16:), exhibited volatile but net growth from January to September 2025.

• Market Pulse: Export volumes surged 55% over the period despite sharp monthly swings, including a 20.54% drop in April and a 25.72% rebound in May, driven by palm oil levy adjustments and robust demand.
• Structural Shift: Indonesia Margarine Export reliance on China (56.4% of value) creates acute geographic risk, with minor diversification from Nigeria (4.0%) and Malaysia (3.4%).
• Product Logic: HS Code 1517 trade data shows a commodity-driven structure, with 81% of value from bulk edible oil preparations (HS 15179043) at $0.96/kg, while niche blends reach $6.73/kg.

This overview covers the period from January to September 2025 and is based on verified customs data from the yTrade database.

Indonesia Margarine (HS Code 1517) Key Metrics Trend

Market Trend Summary

Analyzing the Indonesia Margarine Export trend from January to September 2025 reveals a volatile yet overall upward trajectory in shipment weights. Starting at 154.64 million kg in January, exports surged by 19.16% in February and another 9.69% in March, before a sharp 20.54% contraction in April. Volatility continued with a 25.72% rebound in May, a slight 4.28% dip in June, and a strong 20.21% rise in July, culminating in a 3.62% increase to 239.66 million kg by September—a 55% net gain over the period.

Drivers & Industry Context

The palm oil export levy hike effective May 17, 2025 [USDA] likely pressured production costs for HS Code 1517 goods, as margarine relies heavily on palm inputs. This may explain the April volume drop as exporters adjusted to anticipated higher costs, followed by a May surge to capitalize on pre-levy margins. The overall weight growth despite price declines suggests robust global demand or inventory builds, indirectly supporting the hs code 1517 value through volume expansion rather than price gains. (USDA)

Table: Indonesia Margarine Export Trend (Source: yTrade)

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Indonesia HS Code 1517 Export Breakdown

Market Composition & Top Categories

Indonesia's HS Code 1517 export market is overwhelmingly dominated by general edible oil preparations (HS 15179043), which captured over 81% of the total export value and 84% of the weight from January to September 2025. According to yTrade data, margarine shipments (HS 15171010 and 15171090) collectively accounted for just over 5% of the value, indicating a secondary role. The remaining trade consists of various specialized edible oil blends and mixtures, which collectively represent a minor but diverse segment of the overall Indonesia HS Code 1517 export profile.

Value Chain & Strategic Insights

The unit prices reveal a clear split in the HS Code 1517 breakdown, ranging from $0.96 to $6.73 per kilogram, pointing to both bulk commodity and high-value specialized product streams. This is fundamentally a commodity-driven trade structure where volume dictates the market, though niche, higher-priced preparations exist for specific applications. The extreme price disparity suggests that competition is primarily cost-based for the bulk segment, while specialized products compete on functionality or formulation.

Table: Indonesia HS Code 1517) Export Breakdown Details (Source: yTrade)

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Indonesia Margarine Destination Countries

Geographic Concentration & Market Risk

China dominates Indonesia's Margarine export destinations, capturing 56.4% of total value from January to September 2025. This heavy reliance on a single market creates significant exposure to any economic or trade policy shifts from Beijing. The next largest partners, Nigeria and Malaysia, account for just 4.0% and 3.4% of value respectively, failing to provide meaningful diversification for Indonesian exporters.

Purchasing Behavior & Demand Segmentation

The nearly identical value and weight ratios for China (56.4% vs. 58.4%) reveal a commodity-driven trade pattern for Margarine. This alignment indicates Chinese buyers are purchasing standard-grade product in bulk, likely for industrial food processing or large-scale manufacturing use. The market offers substantial volume scale rather than premium margin potential, positioning Indonesia as a supplier of cost-competitive bulk ingredients to its primary trade partner.

Table: Indonesia Margarine (HS Code 1517) Top Destination Countries (Source: yTrade)

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Indonesia Margarine Buyer Companies Analysis

Buyer Concentration & Market Structure

According to yTrade data, the Indonesia Margarine buyers market is overwhelmingly dominated by Key Accounts, which represent 94.75% of the total value share from January to September 2025. This high concentration points to a stable, contract-based supply chain, where major buyers like PERMATA INTERNATIONAL PTE LTD engage in frequent, high-volume purchases. Such structure underscores the reliance on long-term partnerships rather than spot transactions.

Purchasing Behavior & Sales Strategy

The consistent, high-value purchasing patterns indicate that these buyers are entrenched in repeat, bulk procurement cycles, typical of integrated manufacturing or retail supply chains. To address the inherent concentration risk, sellers should prioritize relationship management and contract stability while cautiously expanding their client base. Monitoring policy shifts, such as the recent export levy hikes detailed in the [USDA Report], is crucial for anticipating cost impacts on HS Code 1517 buyer trends.

Table: Indonesia Margarine (HS Code 1517) Top Buyers List (Source: yTrade)

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Action Plan for Margarine Market Operation and Expansion

• Diversify buyers: Target mid-sized importers in Nigeria and Malaysia to reduce dependence on China, where 94.75% of current trade is concentrated among key accounts.
• Lock in contracts: Renegotiate long-term agreements with major buyers like PERMATA INTERNATIONAL PTE LTD before palm oil levy fluctuations impact margins further.
• Optimize logistics: Streamline bulk shipping for HS 15179043 (81% of volume) to preserve thin commodity margins, given the $0.96/kg unit price.
• Monitor policy shifts: Track USDA alerts on Indonesian palm oil export levies, which directly impact HS Code 1517 production costs and buyer pricing tolerance.
• Segment pricing: Develop tiered offers for high-margin blends ($6.73/kg) targeting specialty food manufacturers, separate from bulk commodity sales.

Take Action Now —— Explore Indonesia Margarine HS Code 1517 Export Data

Frequently Asked Questions

Q1. What is driving the recent changes in Indonesia Margarine Export in 2025?

The volatility in Indonesia's margarine exports is driven by a 55% net weight gain over nine months, with sharp fluctuations linked to palm oil export levy hikes in May 2025. The April volume drop and subsequent May surge reflect cost adjustments, while overall growth suggests robust global demand for bulk commodity-grade products.

Q2. Who are the main destination countries of Indonesia Margarine (HS Code 1517) in 2025?

China dominates with 56.4% of export value, followed distantly by Nigeria (4.0%) and Malaysia (3.4%). This heavy reliance on China creates significant market concentration risk for Indonesian exporters.

Q3. Why does the unit price differ across destination countries of Indonesia Margarine Export in 2025?

Price disparities (from $0.96 to $6.73/kg) stem from the trade’s split between bulk commodity shipments (like general edible oils, 81% of value) and niche, higher-value specialized blends. China’s purchases align with bulk, low-margin demand.

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

Exporters must prioritize stabilizing contracts with key buyers (94.75% of trade) while cautiously diversifying clients. Monitoring cost impacts from policy shifts, like palm oil levies, is critical to maintaining competitiveness.

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

Buyers, especially in China, benefit from reliable bulk supply at competitive prices, but face risks if Indonesian exporters pass on cost pressures from levy hikes or supply chain disruptions.

Q6. How is Margarine typically used in this trade flow?

Margarine exports are primarily commodity-grade, destined for industrial food processing or large-scale manufacturing, as evidenced by China’s bulk purchases and aligned value-weight ratios.