Indonesia’s Palm Oil Sector Could Reach Rp775 Trillion in Value by End of 2024
Indonesia’s palm oil industry is expected to reach a remarkable value of Rp775 trillion (approximately $49.56 billion) by the end of 2024, according to Industry Minister Agus Gumiwang Kartasasmita. This projection highlights the significant role of palm oil in Indonesia’s economy, contributing around 3.5% to the national GDP as of the second quarter of 2024(
The anticipated growth is driven by the government’s focus on the downstream processing of palm oil, which aims to boost the value of derivative products. These include a wide range of items such as oleofood, oleochemicals, biofuels, and other environmentally friendly materials. The minister emphasized the importance of producing high-value products like cosmetics, pharmaceuticals, and biofuels, which can generate a significant economic impact.
In addition to its economic contributions, the palm oil sector is a major employer in Indonesia, supporting around 16.2 million workers directly and indirectly. The industry’s expansion is expected to continue, with the government prioritizing the development of new downstream products and enhancing Indonesia’s position as a leading global palm oil producer.
Global Market and Environmental Challenges
As the palm oil sector grows, Indonesia is also working to address global concerns related to deforestation and sustainability. The government has implemented stricter regulations to ensure that palm oil production aligns with international environmental standards, including efforts to reduce deforestation and promote sustainable practices.
These initiatives aim to balance economic growth with environmental responsibility, responding to criticism from international markets and maintaining Indonesia’s competitiveness in the global palm oil industry
