Indonesia fires could cut palm oil output in Kalimantan by 15%
In Ukraine, UkrAgroConsult reported that palm oil production in Indonesia’s Kalimantan region could decline by 12–15% in the fourth quarter of 2026 due to prolonged dry weather and widespread fires.
According to StoneX, output in the region may already have fallen by 11–12% in August.
Kalimantan accounts for more than one-third of Indonesia’s palm oil production. Central and West Kalimantan together contribute around 27% of national output, while the three provinces including East Kalimantan account for about 36%, the report said.
The situation has been worsened by the country’s most severe wildfires in 11 years amid El Niño-linked drought conditions. Official data show that around 202,000 hectare burned across Indonesia in January-July, while YKAN estimates that another 600,000 hectares were damaged in August.
The Indonesian Palm Oil Association GAPKI warned that the impact of the fires could persist for some time. Fire-damaged palms may die or remain under stress, while recovery could take up to three years, the report added.
Category: Food & Agriculture
