Indonesia reported a sharp rise in crude palm oil exports in the first half of 2025, shipping $11.4 billion in value compared to $9.2 billion the year before. Malaysia’s exports slowed slightly, yet its crude palm oil output still increased. At first glance these figures suggest good news. Palm oil remains one of Southeast Asia’s most profitable exports and years of government support appear to be paying off. Yet behind the economic success lies a more troubling story. Palm oil has been linked to deforestation, the draining of peatlands, and the destruction of habitats that shelter orangutans, Sumatran tigers, and pygmy elephants.
The good oil? Helping palm plantations contribute to global biodiversity targets | Lowy Institute