Indonesia Dominates Global Palm Oil Exports
Jakarta, The Gulf Observer: Coordinating Minister for Economic Affairs, Airlangga Hartarto, has announced Indonesia’s significant dominance in the global palm oil market, accounting for 54 percent of world palm oil supplies.
In 2023, Indonesia achieved a total palm oil production of 56 million tons, with export realization reaching 26.33 million tons, Minister Hartarto disclosed during the National Coordination Meeting for the National Action Plan for Sustainable Palm Oil Plantations 2019–2024 on Thursday.
“Palm oil is the world’s largest palm oil producer, with 56 million tons. Our exports amount to 26.33 million tons, representing 54 percent of the world market,” stated Hartarto.
Highlighting the strategic importance of palm oil for Indonesia, Minister Hartarto emphasized that in 2023, palm oil exports contributed significantly to the country’s economy, reaching Rp28.45 billion (US$1.7 million), accounting for close to 12 percent of non-oil and gas exports.
Moreover, the palm oil industry plays a crucial role in employment generation, directly and indirectly providing livelihoods to approximately 16.2 million people, Hartarto underscored.
Minister Hartarto further outlined the government’s commitment to promoting sustainability in the palm oil industry through various initiatives, including the development of downstream products with higher value, such as B40 biodiesel derived from palm oil, which serves as a sustainable alternative fuel.
Efforts towards sustainability also involve policies such as the Indonesia Sustainable Palm Oil (ISPO) certification and the People’s Palm Oil Rejuvenation (PSR) program. The revised presidential regulation on ISPO aims to accelerate sustainable certification for large-scale businesses and palm oil plantations while enhancing traceability throughout the palm oil supply chain.
Through the Palm Oil Plantation Fund Management Agency (BPDPKS), the government has disbursed funds amounting to Rp9.25 trillion for the PSR program, covering a land area of 331,007 hectares.
Minister Hartarto concluded by noting the government’s increase in funding for the PSR program, from Rp30 million to Rp60 million per hectare, demonstrating its commitment to sustainable palm oil production and fostering rural development.
The announcement underscores Indonesia’s pivotal role in the global palm oil market and its commitment to sustainability and economic development in the sector.
