Indonesian Palm Oil Industry

Indonesia is the world’s largest producer and exporter of palm oil , contributing over 50% of global supply ⁽¹⁾. Alongside Malaysia, Indonesia dominates the industry, producing 46.82 million metric tons of palm oil in 2023⁽²⁾. The industry is a major economic driver, generating USD 39.07 billion in revenue in 2022 and employing over 17 million people. Types of Palm Oil Indonesia produces various types of palm oil, including: - Crude Palm Oil (CPO): The raw, unrefined oil extracted from palm fruit. - Fractionated Palm Oil: Processed into palm olein (liquid) and palm stearin (solid) for different applications. - Palm Kernel Oil: Extracted from the seed, used in cosmetics and food products. - Biodiesel Palm Oil: Used in renewable energy, with Indonesia launching B35 biodiesel (35% palm oil content) in 2023. Specifications for Food Use Palm oil used in food must meet strict quality standards: - Purity & Refinement: Free from impurities, ensuring a neutral taste and odor. - Fatty Acid Composition: Balanced for stability in cooking and food processing. - Sustainability Certification: Many producers adhere to RSPO (Roundtable on Sustainable Palm Oil) standards for ethical sourcing. Industry Growth & Future Trends Indonesia’s palm oil industry has seen rapid expansion due to increased demand in food, cosmetics, and biofuels. The government is actively promoting sustainable production , reducing environmental impact while maintaining high output⁽³⁾. Domestic consumption is also rising, with 23.21 million tons used in biodiesel, food, and oleochemicals in 2023.