JAKARTA, INDONESIA — Soybean consumption is expected to increase 3% in Indonesia as demand from the food sector continues to grow.

Consumption for 2024-25 is estimated at 2.86 million tonnes. The tempeh and tofu industry are the main consumers for imported soybeans, using about 90% of the supplies, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.

Imports are estimated at 2.55 million tonnes, an increase of 50,000 tonnes from 2023-24. The US is expected to remain the largest source, followed by Canada.

Indonesia is expected to produce 360,000 tonnes of soybeans on reduced harvest area.

Soybean meal use is expected to increase 2% to 5.75 million tonnes on continued demand from the feed sector. Poultry feed is the largest consumer of the meal, accounting for at least 80% of animal feed consumption in 2023. Imports are estimated at 5.8 million tonnes, an increase of 100,000 tonnes from last year.

Palm oil production is expected to increase 3% to 47 million tonnes in 2024-25 due to expected recovery from 2023 El Niño effects on the region of Southern Sumatera.

Consumption is forecast up slightly to 19.8 million tonnes on continued growth in industrial use and food sector use. In the industrial sector, the palm-based biodiesel industry has grown rapidly following the implementation of the mandatory biodiesel program.

Palm oil use in the industrial sector is expected to continue to grow due to higher blending rates, increased diesel consumption and export demand.

Palm oil exports for 2024-25 are projected at 28 million tonnes, a slight increase from 2023-24 on continued demand from major markets. Assuming no significant increase in use for the mandatory biodiesel program, exportable palm oil is likely to align with production growth.