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