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🇮🇩 Indonesia /Economy & Trade

CPO Exports Rise; Indonesian Palm Oil Association Pushes for Farmer Rejuvenation

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement Context piece
  • Indonesia's palm oil industry is crucial for the national economy, providing foreign exchange and jobs, especially during economic downturns.
  • The Indonesian Palm Oil Association (GAPKI) emphasizes increasing productivity through farmer rejuvenation programs to meet rising domestic and global demand.
  • East Kalimantan is promoting downstream palm oil industries to add value and benefit the community, while export values for CPO and its derivatives have significantly increased.

The Indonesian Palm Oil Association (GAPKI) highlights the vital role of the palm oil industry in bolstering the national economy, particularly its contribution to foreign exchange and employment. GAPKI Chairman Eddy Martono stated that palm oil has repeatedly served as an economic buffer, generating approximately $39.2 billion in foreign exchange during the pandemic and maintaining job creation when other sectors faced layoffs.

Palm oil foreign exchange reached around 39.2 billion US dollars. Even when many sectors were conducting layoffs, the palm oil industry continued to open new job opportunities.

— Eddy MartonoChairman of GAPKI, highlighting the industry's economic resilience during the pandemic.

To sustain Indonesia's position as a leading global palm oil producer amidst growing demand, GAPKI stresses the importance of enhancing productivity among smallholder and plasma farmers. The association advocates for accelerating the People's Oil Palm Rejuvenation Program (PSR), supported by the Oil Palm Plantation Fund Management Agency (BPDP). This program aims to boost farmer yields through superior seeds, technology adoption, and farmer guidance.

East Kalimantan's Deputy Governor, Seno Aji, emphasized the need for the palm oil industry to adapt through innovation and transformation. The provincial government is actively promoting the development of downstream palm oil industries to maximize value addition within the country. Rachmat Perdana Angga, Chairman of GAPKI's East Kalimantan branch, noted that the Borneo Forum serves as a platform for stakeholders to generate ideas and foster collaborations for the industry's advancement.

Therefore, the East Kalimantan Provincial Government continues to encourage the development of downstream industries based on palm oil. We want the potential possessed by East Kalimantan to provide greater added value, strengthen investment, develop its derivative industries, and provide broader benefits for the community.

— Seno AjiDeputy Governor of East Kalimantan, discussing the province's strategy for palm oil development.

Official data from the Central Statistics Agency (BPS) reveals a substantial increase in exports. The value of CPO and its derivatives exports from January to February 2026 reached $4.69 billion, a 26.40% rise compared to $3.71 billion in the same period last year. Export volumes also saw an increase, growing from 3.33 million tons.

Borneo Forum is a forum for bringing together various stakeholders to generate ideas and collaborations that can support the progress of the Indonesian palm oil industry.

— Rachmat Perdana AnggaChairman of GAPKI East Kalimantan Branch, on the significance of the Borneo Forum.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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