PALMOILMAGAZINE, JAKARTA – The Indonesian government continues to strengthen governance in the national palm oil industry through the implementation of the mandatory Indonesian Sustainable Palm Oil (ISPO) certification. The policy forms part of a broader strategy to maintain the competitiveness of Indonesia’s palm oil sector amid increasing global market pressures and evolving sustainability standards.
Agriculture Minister Andi Amran Sulaiman believes that strengthening sustainability standards is a fundamental step to ensure that Indonesia’s palm oil remains competitive in international markets while also generating added value domestically.
“Indonesia must not step back. Palm oil is one of the nation’s economic strengths. Therefore, its governance must be strong and sustainable, while also being pushed toward downstream development so that the economic benefits can be expanded further,” Amran said in an official statement received by Palmoilmagazine.com on Friday (March 6, 2026).
According to him, the transformation of Indonesia’s plantation subsector must focus on expanding downstream industries. This approach would allow palm oil to move beyond exporting raw materials and instead serve as a foundation for strengthening national industrialization.
Indonesia’s Palm Oil Productivity Remains Globally Competitive
Meanwhile, Acting Director General of Plantations Abdul Roni Angkat noted that Indonesia’s palm oil industry holds a strong advantage in productivity and land efficiency compared with other vegetable oil crops.
With plantation coverage reaching around 16.83 million hectares and crude palm oil (CPO) production projected to reach 48.12 million tons in 2025, Indonesia continues to maintain its position as the world’s largest palm oil producer.
Beyond being a major contributor to national export revenues, the palm oil sector also provides employment for more than 16 million people, including around 5.2 million smallholder farmers.
Roni added that the government continues to strengthen support for palm oil farmers through various programs, including the smallholder replanting program (PSR), infrastructure support, human resource development, as well as research and innovation initiatives.
“Palm oil supports millions of livelihoods. Therefore, productivity improvements must go hand in hand with sustainability,” he said.
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He further explained that with stronger sustainability standards under the ISPO framework and the expansion of downstream palm oil industries, Indonesia’s palm oil sector is expected to further solidify its role as a key pillar of the national economy while continuing to contribute to global food and energy needs. (P2)
