In line with the Golden Indonesia 2045 vision and the target of achieving Net Zero Emissions by 2060 or earlier, the palm oil industry plays not only a strategic role as an economic pillar, but also serves as a model of sustainable transformation that creates green jobs, reduces poverty, and supports the clean energy transition.
Indonesia is committed to managing its natural resources in accordance with the principles of the Sustainable Development Goals (SDGs). “We will continue to balance growth with environmental stewardship, ensuring that our progress does not come at the expense of nature or future generations. Guided by Bali’s local wisdom, Tri Hita Karana, which emphasises harmony between God, people, and nature, we are building a global palm oil industry that is not only productive but also ethical, inclusive, and humane,” said the Minister for National Development Planning/Head of Bappenas Rachmat Pambudy at the 21st Indonesian Palm Oil Conference and 2026 Price Outlook (IPOC) 2025 in Bali on Thursday, 13 November.
Indonesia has the potential to be the world’s largest crude palm oil (CPO) producer, meeting around 59 per cent of global demand with production reaching 47.5 million tonnes. Palm oil is a strategic pillar of the Indonesian economy, driving exports, stimulating industries, and supporting millions of smallholder farmers. “We must help smallholders modernise, gain access to finance, adopt better technologies, and improve their productivity so they can compete and thrive within the global value chain,” emphasised Minister Rachmat.
Efforts underway include regulatory reforms, plantation rejuvenation programmes, strengthened digital systems, and enhanced Indonesian Sustainable Palm Oil (ISPO) certification standards. Bappenas is also promoting the development of downstream palm oil industries, ranging from biofuels and sustainable aviation fuel (SAF) to oleochemical products and high-value environmentally friendly materials, in order to create greater economic value, better green jobs, and stronger, more sustainable growth.
Responsible palm oil management will position the commodity as a comprehensive solution for global food security. “Let us work together for shared benefit, driven by the spirit of no one left behind. Through collaboration among government, business, smallholder farmers, consumers, and all stakeholders in the palm oil agribusiness ecosystem, we can make palm oil a force for civilization, for the good of the world,” concluded Minister Rachmat.
Sumber: bappenas.go.id
