PALMOILMAGAZINE, JAKARTA — The Indonesian government is ramping up efforts to develop cooperative-based palm oil downstreaming, aiming to meet the growing demand for sustainable palm oil in European markets. Minister of Cooperatives and SMEs, Budi Arie Setiadi, emphasized that strategic collaboration with the European Union offers a major opportunity for Indonesian cooperatives to enter global markets with environmentally friendly products.
The statement was made following Minister Budi Arie’s courtesy meeting with the European Union Ambassador to Indonesia, Denis Chaibi, and his delegation in Jakarta.
“This meeting explored potential EU-funded cooperation projects to strengthen the role of cooperatives in developing sustainable commodities, particularly through programs enhancing traceability and sustainability in palm oil,” Budi said, as quoted by Palmoilmagazine.com from Antara, Wednesday (April 16, 2025).
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He noted that the EU has long been a strategic partner in supporting the development of Indonesian cooperatives, both through knowledge exchange and financial assistance.
The Minister stressed the significant potential for cooperatives to take a leading role in downstream processing of natural resources—including palm oil. “Cooperatives can play a key role not just in palm oil, but also in downstreaming other resources like nickel, lithium, bauxite, and copper,” he explained.
He further highlighted how palm oil downstreaming through cooperatives provides added value for farmers while strengthening national medium-scale industries. “When cooperatives manage their own processing facilities, farmers benefit more from their plantations—not only by selling fresh fruit bunches (FFB), but also by producing high-quality refined palm oil,” said Budi.
Meanwhile, EU Ambassador Denis Chaibi expressed the European Union’s readiness to support sustainability-focused projects in Indonesia. In addition to palm oil, these initiatives will also include other key commodities such as timber, rubber, cocoa, and coffee.
This visit marks a new chapter in international cooperation, positioning cooperatives at the forefront of sustainable industrial development. The collaboration is expected to accelerate Indonesia’s green economic transformation while helping the country navigate the EU’s stringent regulatory environment on palm oil products. (P2)
