JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto stated that palm oil continues to be a key pillar of the Indonesian economy. This is reflected in the commodity's significant contribution to Indonesia's trade balance surplus, which reached US$4.34 billion in September 2025.
From January to September 2025, Indonesian palm oil exports reached 28.66 million tons, an 11.26 percent increase compared to the same period the previous year. Meanwhile, the average price of CPO and fresh fruit bunches remained above IDR 3,000 per kilogram, positively impacting producers and millions of smallholder farmers.
Airlangga stated that palm oil will continue to play a vital role as a source of income, energy, innovation, and national strength.
"We must not stop at exporting raw materials. Through a downstream strategy, we want to increase added value, create more jobs, and strengthen our industry," he said in a statement quoted on Friday, November 14.
He added that as part of downstreaming, Indonesia continues to develop the use of palm oil as a clean energy source through its mandatory biodiesel program, one of the largest in the world.
By 2024, the implementation of the B40 Program had successfully reduced fossil fuel imports by more than 15.6 million kiloliters and reduced greenhouse gas emissions by approximately 41.46 million tons of CO₂ equivalent.
Airlangga added that the next phase is also being prepared, namely the development of palm oil-based Sustainable Aviation Fuel (SAF).
"One good example is the collaboration between PT Pindad and the Plantation Fund Management Agency (BPDP) in the Development of Defense Industrial Production Facilities. This initiative will utilize local resources, including palm oil-based materials," explained Airlangga.
He stated that to ensure competitiveness and sustainability, the government issued Presidential Regulation No. 16 of 2025 to strengthen the Indonesian Sustainable Palm Oil (ISPO) certification, which ensures Indonesian palm oil products comply with environmental and global standards.
"We are also preparing the ISPO Information System, which connects plantation, certification, and trade data. This system also increases transparency and enables real-time product tracking," he said.
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