El Nino, biofuel regulations squeeze Indonesian palm oil producers

Trade association forecasts falling output in 2027, calls situation 'stressful' Indonesian palm oil industry players gather for an annual conference in Bali on Nov. 12-13. The meeting is happening as El Nino-driven drought and fires hamper production in Kalimantan and Sumatra. (Photo by Natsumi Kawasaki)

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November 13, 2026 14:56 JST

BALI, Indonesia -- Indonesia's palm oil industry is facing shortages as a severe El Nino weather phenomenon and fires threaten production, even as demand rises due to the government's drive to expand use of biodiesel.

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