Indonesia Roadmap Focused on Downstream Palm Oil Industry’s Development

The Government of Indonesia has prepared a roadmap for developing the downstream palm oil industry to transform it into world’s largest producer to weather volatility in crude palm oil prices, according to Coordinating Economic Affairs Minister Airlangga Hartato, reported in Antara News in Jakarta.  

The roadmap covers ways to increase productivity; support downstream activities, such as oleofood, oleochemical and biofuel; create an ecosystem; implement good governance; improve capacity building; and develop technology to boost palm oil businesses, the minister said in a statement released in Jakarta on November 13.  Hartarto remarked that palm oil was one of the resilient farm commodities and contributed to the national economic growth in the third quarter of 2021.  

The palm oil industry also contributes directly to creating jobs.  Hence, the government has adopted a vision to turn the domestic palm oil industry into the world’s largest palm oil producer and encourage development of the downstream palm oil industry, he stated.  With land area covering 10% of the global land bank for vegetable oils, Indonesia is able to become the world’s largest palm oil producer and hold a 55% share of the global palm oil and vegetable oil market, he noted.  In addition, it will be able to produce 40% of the global vegetable oils that play a crucial role in the context of food security, he affirmed.