Indonesia’s agricultural exports strengthened in January–July 2026, with CPO and palm oil derivative exports rising 5.49% year on year as higher global palm oil prices and growing processed-product exports supported the sector.
PALMOILMAGAZINE, JAKARTA — Indonesia’s agricultural export performance strengthened in January–July 2026, with exports of crude palm oil (CPO) and its derivatives increasing 5.49% from the same period a year earlier.
The growth came as Indonesia’s overall non-oil and gas exports reached US$160.01 billion during the first seven months of 2026, up 5.21% year on year. Total exports stood at US$167.03 billion, representing growth of 4.43%.
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Indonesia’s palm oil sector benefited from stronger global commodity prices during the period. Ateng Hartono, Deputy for Distribution and Services Statistics at Statistics Indonesia (BPS), said global commodity prices generally increased on an annual basis in July 2026, including agricultural commodities.
“Prices of commodities in global markets generally increased year on year in July 2026. Annual increases were recorded in agriculture, energy, precious metals, and metals and minerals, with agricultural commodity prices driven mainly by higher palm oil prices,” Ateng said during BPS’s official statistics briefing on September 1.
Palm Oil Supports Non-Oil and Gas Exports
The strengthening of palm oil exports was also reflected in the broader category of animal and vegetable fats and oils under HS Code 15, one of the commodity groups supporting Indonesia’s non-oil and gas exports.
Palm oil-based products also contributed through Indonesia’s manufacturing sector, which expanded 7.16% during January–July 2026.
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The figures highlight the growing role of processed agricultural commodities in Indonesia’s international trade. Rather than relying solely on primary commodities, downstream processing allows agricultural products to generate additional economic value while strengthening Indonesia’s position in global markets.
China remained one of Indonesia’s major non-oil and gas export destinations. Indonesia’s non-oil and gas exports to China reached US$40.62 billion in January–July 2026, up 18.01% from the same period a year earlier.
The animal and vegetable fats and oils category, which includes palm oil products, was among the commodities traded between the two countries.
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Government Pushes Palm Oil Downstreaming
Agriculture Minister Andi Amran Sulaiman said the export performance demonstrates the strength of Indonesia’s agricultural commodities in global trade, particularly palm oil.
“Indonesia is one of the world’s largest palm oil producers. This is our strength. We should not only export raw materials, but should promote downstream processing so that more value is created,” Amran said.
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He said export growth needs to be supported by higher productivity at the upstream level and stronger downstream processing. This approach, he added, is intended to increase the value generated across the supply chain and expand benefits for farmers and smallholders.
“What is most important is how the added value returns to farmers and smallholders. We need to increase productivity and promote downstream processing. The entire chain, from upstream to downstream, needs to be strong,” he said.
The government is continuing to promote replanting, the use of improved planting materials, higher productivity and the development of agricultural processing industries.
For Indonesia’s palm oil sector, the strategy is aimed at strengthening the country’s position not only as a major producer, but also as a competitive exporter of higher-value processed products.
CPO and Derivatives Remain Strategic Export Commodities
The 5.49% growth in CPO and derivative exports during January–July 2026 underscores the strategic role of palm oil in Indonesia’s agricultural trade.
Higher global palm oil prices provided support to export performance, while downstream processing offers an additional avenue for increasing export value.
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Amran said stronger productivity and downstream development should ultimately translate into greater economic benefits for producers.
“Agriculture must generate output and added value. We want more Indonesian agricultural products to enter global markets and provide the greatest possible benefits to farmers,” he said. (P3)
