Indonesia accounts for 54% of global palm oil exports – minister

Coordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia dominates global palm oil exports, accounting for 54 percent of the world’s palm oil supply.

In 2023, Indonesia’s total palm oil production was 56 million tons and export sales reached 26.33 million tons, he said.

“Indonesia is the world’s largest palm oil producer with 56 million tons. Our exports are 26.33 million tons and account for 54 percent of the global market,” Hartarto said at the National Coordination Meeting on the National Action Plan for Sustainable Palm Oil Plan 2019-2024 on Thursday.

Palm oil is a strategic commodity for Indonesia, he said. In 2023, the value of palm oil exports reached Rp 28.45 billion (US$1.7 million).

In addition, the palm oil industry contributes to the labor sector, directly or indirectly employing 16.2 million people, he stressed.

“Palm oil also drives the economy in palm oil producing areas and has contributed to rural development and poverty alleviation,” Hartarto added.

Therefore, his ministry continues to develop palm oil processing, producing finished products with higher value, such as B40 biodiesel derived from palm oil, which has been developed as a sustainable alternative fuel.

Therefore, his ministry continues to develop palm oil processing by producing finished products with higher value, such as B40 biodiesel derived from palm oil, which has been developed as a sustainable alternative fuel.

Hartarto also said that his ministry is currently focusing on building a sustainable palm oil industry through a number of efforts under various policies, including the Indonesian Sustainable Palm Oil Certification (ISPO) and the People’s Palm Oil Rejuvenation Program (PSR).

The Presidential Regulation on ISPO aims to accelerate sustainable certification for large-scale palm oil mills and plantations.

“The Presidential Regulation has been revised and ISPO also includes traceability of the palm oil supply chain by strengthening the concept of refining,” the minister said.

The government, through the Palm Oil Plantation Fund Management Agency (BPDPKS), has allocated funds of Rp 9.25 trillion for a land area of 331,007 hectares for the PSR program.

Earlier, the government increased the funding for the PSR program from Rp30 million to Rp60 million per hectare, Hartarto said.

Tags: Indonesia, palm oil