Palm Oil Contributes 3.5% to GDP, 2025 Exports Reach US$40 Billion
Senior Advisor for Connectivity and Service Development at the Coordinating Ministry for Economic Affairs, Dida Gardera, revealed that the palm oil sector contributes approximately 3.5% of Indonesia’s Gross Domestic Product (GDP). “The contribution of the palm oil industry is substantial, around 3.5% of our GDP. Export value in 2025 also reached a record of approximately US$40 billion, with export volume hitting 38.84 million tons, up 11% year-on-year,” he said during the National Coordination Meeting on the Sustainable Palm Oil National Action Plan (RAN-KSB). The strong export performance confirms palm oil’s position as one of Indonesia’s leading global commodities. Beyond foreign...
2026/05/03
Palm Oil 2.3 Million Hectares: A Big Ambition, With Longstanding Challenges Still Unresolved
The statement by Kuntoro Boga Andri, Director of Downstream Plantation Products at the Ministry of Agriculture of the Republic of Indonesia, regarding the government’s commitment to expand oil palm areas—following the direction of Prabowo Subianto—at first glance sounds like a logical continuation of the broader narrative of downstream industrialization, renewable energy, and strengthening the national economy. In the logic of development, palm oil is indeed too large to ignore. It generates foreign exchange earnings, serves as feedstock for biodiesel, supports the oleochemical industry, and provides livelihoods for millions of Smallholders across Indonesia. Yet behind that optimism lies one unresolved issue:...
2026/05/02
GAPKI Marks 45th Anniversary, Reaffirms Palm Oil’s Strategic Role in Indonesia’s 2045 Vision
Held at Pullman Jakarta Indonesia in Central Jakarta on April 29, 2026, the event highlighted GAPKI’s four-decade journey as one of the country’s most influential industry organizations, actively shaping policy dialogue and supporting the expansion of Indonesia’s palm oil sector into a globally strategic commodity industry. Eddy Martono, Chairman of GAPKI, said the organization’s 45th anniversary was more than a milestone in age—it was a moment of reflection on decades of industry transformation, institutional learning, and increasingly close strategic collaboration between government and the private sector. “This 45-year milestone is not merely about age. It reflects a long journey filled...
2026/05/01
Between 2020 and the end of 2025, total disbursement under the program reached Rp200.64 billion, reflecting the government’s continued commitment to improving smallholder productivity and infrastructure quality. Yet on the ground, access to these benefits remains far from straightforward. Many independent smallholders continue to face lengthy administrative procedures, layered documentation requirements, and years of field assistance before proposals can formally enter the approval pipeline. That reality is clearly reflected in North Aceh, where the Serikat Petani Kelapa Sawit (SPKS) has spent years assisting smallholders in submitting proposals for plantation road rehabilitation. According to Abubakar AR, Head of SPKS North Aceh,...
2026/04/30
Riau Promotes Palm Oil–Cattle Integration to Meet Rising Meat Demand
Reported by from Suara Riau on Monday (April 13, 2026), Riau Regional Secretary Syahrial Abdi highlighted the province’s vast palm oil area of 3.49 million hectares as a key asset for developing integrated agriculture. He explained that population growth of 3.79% per year significantly outpaces cattle population growth, which stands at only 0.22%, creating a widening supply gap. To address this, the province is promoting the Palm Oil–Cattle Integration System (SISKA), which enables optimal land use by combining plantation and livestock activities. This approach is expected to improve productivity, create additional income streams, and support regional economic diversification. “Integration is...
2026/04/16
