Indonesia's palm oil exports, including refined products, fell to 1.996 million metric tons in May, down 25.1% from the same month last year, the Indonesian Palm Oil Association (GAPKI) reported.
On a monthly basis, shipments declined 28.12% from April, marking a significant contraction in outflows from the world's largest producer.
The steep drop in export volumes reinforces bearish sentiment in the vegetable oil complex.
Palm oil prices have faced downward pressure as supply concerns ease, with the latest data suggesting a build-up of inventory or a slowdown in global purchasing.
The decline follows reports that India, the world's largest importer, saw its palm oil imports fall to a 14-month low in June due to subdued domestic demand and a narrowing price discount against rival oils such as soybean and sunflower.
Weakness in Indonesian export figures often signals broader softness in the commodity market, particularly when coupled with contracting manufacturing activity in the region.