El Nino, biofuel regulations squeeze Indonesian palm oil producers

Commodities 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) NATSUMI KAWASAKI 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. Read Next Commodities Palm oil prices to stay high next year on Southeast Asia drought Big in Asia Singapore haze crackdown tests legal reach and regional ties Fires Indonesia fires and haze cause more than 5,200 deaths, study says International relations Indonesia-Singapore spats escalate over haze, energy, MSCI Environment Singapore hopes heavier haze fines will change corporate behavior Commodities El Nino dries Kalimantan rivers, hits coal shipments in Indonesia Environment In Indonesia's West Kalimantan, prolonged fires and haze choke residents Latest on Commodities Commodities Russian crude oil prices jump on China, India demand Commodities Malaysian palm oil producer turns to solar for steadier income Commodities India's gold imports down 81%; global prices could be impacted Sponsored Content About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.