In West Kalimantan, Indonesia, a prolonged drought linked to an intense "super El Nino" has disrupted the palm oil supply chain, leaving thousands of smallholder farmers unable to sell their fresh fruit bunches. The Kapuas River, the province’s primary transportation route and Indonesia’s longest river at 1,143 kilometers, has shrunk significantly, hindering the movement of palm oil products and forcing local mills to curb purchases.

Supendi, a 33-year-old palm fruit farmer, spent four days at a mill attempting to unload his harvest but was ultimately turned away due to the site’s full storage tanks. This situation reflects a broader issue across the region, where mills have reduced buying fresh fruit bunches as they are unable to process or ship the oil, leading to an accumulation of unsold fruit that now risks rotting.

The severe drought in West Kalimantan and surrounding areas is attributed to an unusually strong El Nino weather pattern, caused by warming Pacific Ocean waters near South America. This phenomenon typically brings hotter and drier conditions to Southeast Asia. This year, however, the effects have been particularly intense, causing the Kapuas River water levels to fall below those seen during previous El Ninos in 2015 and 2018. The drought has persisted for over two months, longer than earlier events that lasted about a month.

The receding river has exposed sandbanks, grounding several barges and tugboats essential for transporting palm oil. Road transport alternatives offer limited relief since trucks have smaller capacities and availability constraints, according to local millers.

Besides agricultural and logistical impacts, the drought has intensified forest fires in Borneo and Sumatra, producing hazardous haze that has spread across West Kalimantan and neighboring countries like Malaysia and Singapore. These wildfires are the most severe Indonesia has faced in over a decade.

Indonesia’s weather agency forecasts that the onset of the rainy season, typically expected in October, will likely be delayed until November this year. This postponement is expected to extend the drought conditions and delay the replenishment of river levels, prolonging the challenges faced by farmers and the palm oil industry until relief arrives with the rains.