Palm Oil Downstreaming a Strategic Weapon to Boost Indonesia's Exports, Minister Says

Indonesia's Minister of Agriculture, Andi Amran Sulaiman, has identified the downstreaming of crude palm oil (CPO) as a crucial strategic tool for enhancing the nation's export performance. This assertion comes in the wake of a positive growth trend in the export value of CPO and its related products, which increased by 7.32% during the first half of 2026. Minister Sulaiman highlighted Indonesia's dominant position in the global CPO market, noting that the country, along with neighboring Malaysia, collectively accounts for approximately 80% of worldwide CPO production. "We are number one in the world. CPO downstreaming is a strategic weapon for Indonesia," the minister stated in Jakarta on Tuesday. He emphasized the importance of continuously strengthening agricultural exports through increased value addition and industrial processing, believing these measures will yield greater benefits for the national economy and the welfare of farmers. Data from Indonesia's Central Statistics Agency (BPS) confirms a positive trajectory for the agricultural sector from January to June 2026. This growth was significantly influenced by rising global CPO prices. Ateng Hartono, BPS Deputy for Distribution and Services Statistics, confirmed the year-on-year increase of 7.32% in the export value of CPO and its derivatives for the first six months of 2026. Collectively, the category of animal and vegetable fats and oils (HS15), which includes CPO, saw its exports reach $25.46 billion in June 2026, an 8.84% year-on-year increase. The HS15 group specifically recorded a 10.45% rise. CPO, along with iron and steel and coal, constituted 28.30% of Indonesia's total non-oil and gas exports in the first half of 2026. Among these key commodities, CPO exhibited the highest growth rate at 7.32%.

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We are number one in the world. CPO downstreaming is a strategic weapon for Indonesia.