Indonesia Palm Kernel Oil HS151329 Export Data 2025 May Overview

Indonesia Palm Kernel Oil (HS 151329) 2025 May Export: Key Takeaways

Indonesia’s Palm Kernel Oil (HS Code 151329) exports in May 2025 reveal a high-value concentration in the U.S., where premium pricing suggests superior product grades, while the Netherlands and China drive over 65% of total export value, indicating significant market dependence. The U.S. market’s 30% value share highlights its dominance despite Indonesia’s recent export levy hikes to support domestic biofuel programs. This analysis, covering May 2025, is based on cleanly processed Customs data from the yTrade database.

Indonesia Palm Kernel Oil (HS 151329) 2025 May Export Background

Indonesia's Palm Kernel Oil (HS Code 151329), a refined vegetable oil used in food, cosmetics, and biofuels, maintains steady global demand due to its versatility. In May 2025, Indonesia raised export levies on palm products to 10% for crude and 9.5% for refined oils, aiming to support domestic biodiesel programs like B40 [FAS USDA]. As the world's top palm oil producer, Indonesia's export policies directly impact global supply chains, making its 2025 May adjustments critical for traders.

Indonesia Palm Kernel Oil (HS 151329) 2025 May Export: Trend Summary

Key Observations

Indonesia's Palm Kernel Oil exports under HS Code 151329 contracted in May 2025, with total value dropping to $158.50 million and volume declining to 86.91 million kg.

Price and Volume Dynamics

The May figures represent a sharp sequential decline from April’s $178.01 million in value and 101.22 million kg in volume. This pullback aligns with typical palm sector cycles, where export volumes often soften mid-year as processing activity slows seasonally. Despite the monthly dip, cumulative 2025 performance remains robust, reflecting sustained global demand for palm derivatives. The value-to-weight ratio held relatively stable, indicating firm underlying pricing even as shipments eased.

External Context and Outlook

Export policy shifts directly influenced this volatility. Indonesia raised export levies on most palm products in mid-May [FAS/USDA], increasing costs for foreign buyers. This followed earlier adjustments to export duties (FAS/USDA) and benchmark prices, all aimed at securing domestic supply for the expanded B50 biodiesel mandate. These measures are likely to maintain upward pressure on export prices while constraining shipment volumes through the remainder of 2025.

Indonesia Palm Kernel Oil (HS 151329) 2025 May Export: HS Code Breakdown

Product Specialization and Concentration

Indonesia's Palm Kernel Oil exports under HS Code 151329 in May 2025 were heavily concentrated in sub-code 15132995, which accounted for over 66% of the export value and 65% of the weight. This sub-code, described as vegetable oils; palm kernel or babassu oil and their fractions, other than crude, whether or not refined, but not chemically modified, had a unit price of 1.84 USD per kilogram, indicating it is the dominant standard grade in the market.

Value-Chain Structure and Grade Analysis

The remaining exports consist of two other sub-codes: 15132994 with a 19.72% value share and a lower unit price of 1.63 USD per kilogram, and 15132991 with a 13.98% value share and a higher unit price of 2.09 USD per kilogram. This price spread suggests a simple grade-based structure with standard, economy, and premium tiers, rather than complex value-added processing. The market operates as a bulk commodity trade where prices are likely tied to quality differences, not brand or manufacturing differentiation.

Strategic Implication and Pricing Power

Exporters face pressure on pricing power due to the commodity-like nature of these products, but the premium grade (15132991) offers a margin opportunity. Recent policy changes, such as Indonesia raising export levies on palm products in May 2025 [USDA], may increase costs and reduce profitability, emphasizing the need to prioritize higher-value grades to maintain competitiveness.

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Indonesia Palm Kernel Oil (HS 151329) 2025 May Export: Market Concentration

Geographic Concentration and Dominant Role

The Indonesia Palm Kernel Oil HS Code 151329 Export 2025 May shows strong reliance on the United States, which holds a 30.14% value share against its 28.33% weight share. This value-weight gap points to higher unit prices for U.S. shipments, suggesting premium product grades or specialized processing stages in this commodity trade. The top three buyers—United States, Netherlands, and China—together account for over 65% of the total export value, indicating concentrated market dependence.

Partner Countries Clusters and Underlying Causes

Two clear buyer groups emerge: major industrial consumers (United States, Netherlands, China) and regional suppliers (Brazil, Egypt, Russia). The first cluster likely uses the oil for food manufacturing or biofuels, driven by consistent high-volume demand. The second cluster may re-export or process the oil for regional markets, as seen with Brazil’s 11.50% value share matching its weight share. A third group of smaller European markets (Spain, Italy) shows lower frequency but stable engagement, possibly for niche applications.

Forward Strategy and Supply Chain Implications

Exporters should prioritize relationship management with key buyers in the U.S. and EU to offset policy risks, as Indonesia raised export levies on palm products in May 2025 to support domestic biofuel programs [USDA]. Diversifying into regional markets like Egypt or South Africa could reduce over-reliance on top partners. The consistent volume from China and Brazil also suggests resilient demand, making them reliable secondary markets despite lower unit prices.

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Indonesia Palm Kernel Oil (HS 151329) 2025 May Export: Action Plan for Palm Kernel Oil Market Expansion

Strategic Supply Chain Overview

The Indonesia Palm Kernel Oil Export 2025 May under HS Code 151329 operates as a bulk commodity trade. Price is driven by product grade quality and recent policy shifts. The dominant sub-code 15132995 sets the standard price at 1.84 USD/kg. Premium grade 15132991 offers higher margins at 2.09 USD/kg. Geopolitical risk from Indonesia's May 2025 export levy increase pressures costs. Supply chain implications focus on supply security for major industrial buyers. Indonesia acts as a processing hub for global food and biofuel markets. Heavy reliance on the U.S., Netherlands, and China creates vulnerability to demand shifts. Traditional trade analysis misses sub-code and buyer behavior details. This insufficiency hides profit opportunities in grade diversification.

Action Plan: Data-Driven Steps for Palm Kernel Oil Market Execution

• Analyze buyer frequency data to lock in long-term contracts with high-value clusters. This ensures stable revenue and reduces exposure to spot market volatility.
• Track real-time pricing for HS Code 151329 sub-codes to shift sales toward premium grade 15132991. This directly increases margin per kilogram exported.
• Map destination patterns to diversify into regional markets like Egypt or Brazil. This reduces over-reliance on top three partners and spreads policy risk.
• Monitor export levy adjustments monthly to adjust costing and quotation strategies. This protects profitability against sudden regulatory cost increases.

Take Action Now —— Explore Indonesia Palm Kernel Oil Export Data

Frequently Asked Questions

Q1. What is driving the recent changes in Indonesia Palm Kernel Oil Export 2025 May?

The decline in export value and volume reflects seasonal softening and Indonesia's May 2025 export levy hike, which increased costs for buyers. Despite this, underlying pricing remained stable due to sustained global demand.

Q2. Who are the main partner countries in this Indonesia Palm Kernel Oil Export 2025 May?

The U.S., Netherlands, and China dominate, collectively accounting for over 65% of export value. The U.S. leads with a 30.14% share, paying premium prices for higher-grade products.

Q3. Why does the unit price differ across Indonesia Palm Kernel Oil Export 2025 May partner countries?

Price gaps stem from product tiering: sub-code 15132991 (premium grade at 2.09 USD/kg) targets markets like the U.S., while standard grades (1.63–1.84 USD/kg) serve bulk buyers.

Q4. What should exporters in Indonesia focus on in the current Palm Kernel Oil export market?

Prioritize high-value buyers (88.93% of trade) and premium grades to offset levy impacts. Diversify into regional markets (e.g., Brazil, Egypt) to reduce reliance on top partners.

Q5. What does this Indonesia Palm Kernel Oil export pattern mean for buyers in partner countries?

Major buyers (U.S., EU) face higher costs but secure consistent supply, while smaller markets benefit from niche-grade availability. Bulk purchasers can leverage stable commodity pricing.

Q6. How is Palm Kernel Oil typically used in this trade flow?

It serves as a bulk commodity for food manufacturing and biofuels, with premium grades likely used in specialized food applications or higher-tier industrial processes.