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Minister of Agriculture Andi Amran Sulaiman said strengthening sustainability standards is crucial to maintaining the global competitiveness of Indonesian palm oil while increasing its domestic value-added potential.
“Indonesia must not step back. Palm oil is one of the nation’s economic strengths. Therefore, governance must be strong and sustainable while downstream development continues to be encouraged to expand its economic benefits,” Amran said in an official statement received by on Friday (6 March 2026).
Acting Director General of Plantations Abdul Roni Angkat said Indonesia’s palm oil sector has strong advantages in productivity and land efficiency compared with other vegetable oil crops.
With plantation coverage reaching around 16.83 million hectares and projected CPO production of 48.12 million tons in 2025, Indonesia remains the world’s largest palm oil producer.
The industry also supports more than 16 million jobs, including around 5.2 million smallholders.
Roni added that the government continues to strengthen support for oil palm farmers through programs such as smallholder replanting (PSR), infrastructure assistance, human resource development, and research and innovation.
“Sustainability and productivity must go hand in hand, especially in a sector that supports millions of workers,” he said.
The government believes that stronger sustainability standards and continued downstream development will further solidify palm oil’s role as a pillar of Indonesia’s economy and an important contributor to global food and energy supply.