Trade Minister Budi Santoso says Indonesia must strengthen value-added processing, traceability and sustainability to boost the global competitiveness of cocoa and palm oil.
PALMOILMAGAZINE, JAKARTA — Indonesia is stepping up efforts to increase the value of its cocoa and palm oil commodities as global competition intensifies, Trade Minister Budi Santoso said.
The strategy focuses on strengthening downstream processing while promoting traceability and sustainability across both sectors. The government expects these measures to improve the competitiveness of Indonesian commodities in international markets.
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Budi made the remarks in his keynote address at the Regional Learning Forum on Sustainable Commodities in Jakarta on Thursday (Aug. 27, 2026). The forum brought together cocoa and palm oil stakeholders from Indonesia and abroad, including government officials, industry associations, businesses, exporters and academics.
“Global market competition is becoming increasingly intense. Buyers are no longer looking only at prices, but are also demanding sustainability, food safety and reliable supply chains,” Budi said, as quoted by PalmOilMagazine from the Ministry of Trade’s website on Sunday (Aug. 30).
He added that Indonesia’s export strategy must therefore focus on increasing value-added products, meeting international standards, diversifying export markets and making better use of international trade agreements.
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Cocoa Exports Show Stronger Competitiveness
Budi pointed to Indonesia’s cocoa sector as an example of how downstream processing can strengthen export competitiveness.
Global demand for Indonesian cocoa products showed positive growth between 2021 and 2025. Cocoa exports reached US$3.6 billion in 2025, nearly three times the US$1.21 billion recorded in 2021.
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Exports are also increasingly dominated by processed cocoa products, reflecting the impact of Indonesia’s downstream industrialization policy in creating greater value from domestic natural resources.
Indonesia has also been recognized by the International Cocoa Organization (ICCO) as a producer of fine flavour cocoa. The recognition provides an opportunity for Indonesia to strengthen its position in the premium cocoa market through product innovation, geographical indication protection and sustainable production practices.
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Trade Agreements to Expand Market Access
Budi said international trade agreements are another important instrument for expanding market access and strengthening the competitiveness of Indonesian products.
Currently, 25 international trade agreements have been implemented, while two agreements are undergoing ratification and another 13 remain under negotiation.
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The Ministry of Trade is also seeking to accelerate trade cooperation with major markets, including the European Union and the United States, to improve market access for Indonesian cocoa and palm oil products.
“To optimize the use of trade agreements, Indonesian businesses can take advantage of trade facilitation provided by the Ministry of Trade through a network of 46 Indonesian trade representatives across 33 export destination countries,” Budi said.
These overseas trade representatives assist Indonesian companies with product promotion, market intelligence and business matching with potential buyers.
From January to July 2026, the Ministry of Trade facilitated business-matching activities involving 1,021 businesses, generating potential transactions worth US$275.61 million.
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Trade Expo Indonesia Targets Global Buyers
Indonesia is also strengthening its global product promotion efforts through the Trade Expo Indonesia (TEI).
The 2025 edition generated total transactions of US$22.8 billion, including US$474.7 million contributed by micro, small and medium enterprises (MSMEs).
Budi encouraged stakeholders across the cocoa and palm oil industries to participate in TEI and use the event to showcase Indonesia’s competitive products to international buyers.
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“The transaction value demonstrates the strong confidence of international markets in the quality of Indonesian products,” Budi said.
He invited cocoa and palm oil stakeholders to participate in the 41st Trade Expo Indonesia, scheduled for Oct. 14–18, 2026.
The government expects greater value addition, traceability, sustainability and broader market access to work together in strengthening the position of Indonesian cocoa and palm oil in the global market. (P3)
