West Kalimantan Drought Disrupts Palm Oil Flows as Kapuas Recedes

Sanggau, 19 October 2026 – An El Niño-driven drought is disrupting palm-oil transport and processing in Indonesia’s West Kalimantan province as the Kapuas River recedes. Thirteen of the province’s 50 mills have been affected, representing roughly half of local processing capacity, while industry estimates indicate September palm-oil supply fell about 11% from August.

For Asian businesses and investors, the disruption matters because Indonesia is the world’s largest palm-oil producer and West Kalimantan contributes about 11% of national output. The affected-mill count and provincial supply estimate come from the Indonesian Palm Oil Association. Forecasts for future output remain uncertain because rainfall, river depth and mill inventories can change quickly.