Two-thirds of palm oil deforestation in Indonesia linked to domestic demand

Oxford, United Kingdom (13 October 2026) – A new analysis of Indonesian palm oil supply chain data from 2023–2024 reveals the domestic market was linked to two-thirds of palm oil driven deforestation – nearly nine times the deforestation linked to exports to India, the top foreign market. [1].

“The growing domestic market makes sector-wide transparency more critical than ever. Strengthening forest conservation will require better reporting on domestic buyers and publicly accessible sourcing locations for domestic supply chains”, said Adelina Chandra, Trase’s researcher.

More than half of Indonesia’s palm oil was consumed domestically in 2024 – an all-time high driven by growing domestic demand, including to produce biodiesel.

Four major corporate groups continue to dominate exports: Royal Golden Eagle (RGE), Sinar Mas, Musim Mas and Wilmar. Royal Golden Eagle, Sinar Mas, Musim Mas and Wilmar together accounted for 52% of export volume in 2024.

Mid-sized exporters saw larger shifts: KPN Corp rose from 15th to seventh, while Permata Hijau dropped from fifth to 12th.

Papua and Kalimantan are key deforestation hotspots

While Indonesian palm oil production reached a record high in 2024, new forest conversion remained at a fraction of past levels.

However, deforestation for palm oil in Papua more than doubled in 2025, compared with the year before, while Kalimantan accounted for 56% of Indonesia’s total palm oil driven deforestation.

Peat subsidence caused by palm oil plantations and peat burning accounted for 85% of the sector’s greenhouse gases emissions.

“As burned area mapping by the MapBiomas Indonesia shows, of all extractive concessions, palm oil concessions still hold the biggest number of fires [3]. Improvements by the palm oil industry are still needed,” said Timer Manurung, Executive Director of Auriga. [2]

This data comes as Indonesia faces its worst wildfire season in more than a decade this year.

Key findings include:

• Indonesia is the world’s largest producer of palm oil with a record output of 47 million tonnes in 2024, with more than half consumed domestically – an all-time high driven by growing domestic demand.
• India remained the largest export market for Indonesian palm oil, followed by Pakistan, which overtook China to become the second-largest market destination in 2024.
• Overall deforestation for palm oil remains at a historic low of 32,000 hectares in 2024, despite a recent uptick in forest loss.
• Deforestation for palm oil in Papua more than doubled from 3,600 hectares in 2024 to 7,300 hectares in 2025, while Kalimantan accounted for 56% of Indonesia’s total palm oil driven deforestation.
• In 2024, peat subsidence caused by palm oil plantations released 148 million tonnes of CO₂-equivalent; and, together with peat burning, accounted for almost 85% of the sector’s assessed greenhouse gas emissions.
• Smallholders produce 35% of Indonesia’s palm oil but face barriers to replanting support, secure land tenure and traceability.

For further information, contact:

Gisele Neuls, Trase Communications Lead at Global Canopy | g.souzaneuls@globalcanopy.org | +44(0)7925 128 159

Vicky Suryono, Campaigner at Auriga Nusantara | vicky@auriga.or.id

Notes for Editors

[1] Data covers palm oil supply chains for 2023 and 2024 and deforestation data for 2025. It will be available on the Trase website (www.trase.earth) on October 13. A launch event will take place in Jakarta at 09 AM (GMT+7).

[2] For more details, download the Mapbiomas Fire Factsheet Burned Area in Indonesia January–August 2026.

[3] We can provide the graphics on the explainer in higher resolution if needed.

About Trase

Trase is a data-driven transparency initiative led by Global Canopy and Stockholm Environment Institute (SEI). We map international trade in agricultural commodities and provide open-access data, insights, and tools that help companies, financial institutions, and governments strengthen accountability for their sustainability goals. www.trase.earth

About Auriga

Auriga Nusantara (www.auriga.or.id) is an Indonesian environmental NGO and Trase’s lead partner in Indon