Indonesia’s palm oil exports account for 54% of the world’s

Illustrative photo (Photo: Antara)

Jakarta (VNA) – Indonesia is the world’s biggest palm oil supplier as its exports account for 54% of the global palm oil exports.

Coordinating Minister for Economic Affairs Airlangga Hartarto said that in 2023, the country's total palm oil production reached 56 million tonnes, of that, 26.33 million tonnes were exported.

According to the minister, palm oil is a strategic commodity for Indonesia. In 2023, the value of palm oil exports reached 28.45 billion IDR (1.7 million USD), or close to 12% of non-oil and gas exports.

In addition, the palm oil industry contributes to its labour sector by directly and indirectly employing 16.2 million people.

Palm oil is also an economic driver in palm oil-producing areas, helping to boost rural development and reducing poverty, he added.

The ministry is focusing on creating a sustainable palm oil industry by undertaking several efforts through various policies, including the Indonesia Sustainable Palm Oil (ISPO) certification and the People's Palm Oil Rejuvenation (PSR) programme.

The presidential regulation on ISPO aims to accelerate sustainable certification for large-scale businesses and palm oil plantations, the minister said.

He said the presidential regulation has been revised and the ISPO also includes traceability of the palm oil supply chain by strengthening the downstream concept.

The government, through the Palm Oil Plantation Fund Management Agency (BPDPKS), has disbursed funds amounting to 9.25 trillion IDR for a land area of 331,007 hectares for the PSR programme.

Earlier, the government had increased funding for the PSR programme from 30 million ID to 60 million IDR per hectare, he said./.