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The value of Indonesian palm oil exports climbed by 60 percent during the January-October 2026 period, significantly outstripping the 6 percent growth in shipment volume. In response to this trade performance, the government is strengthening the Indonesian Sustainable Palm Oil (ISPO) certification to maintain industry competitiveness and satisfy global market demands.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the value of palm oil exports in the first ten months of this year reached 28.84 billion USD, while the shipment volume stood at 23.8 million tons. Although both figures rose compared to the same period in 2025, the fact that export value growth far exceeded volume growth indicates that the value and quantity of goods shipped are not moving at the same speed.
In a video address at the opening of the Indonesian Palm Oil Conference (IPOC) and 2027 Price Outlook in Nusa Dua, Bali, Airlangga emphasized that the government continues to promote ISPO as the national standard to ensure palm oil production meets sustainability requirements. The government is also developing an ISPO information system to link plantation certification data with supply chain information, from raw material sourcing to distribution.
'These efforts are not only important for meeting sustainability and market standards but also provide a strong foundation for downstream industries,' said Airlangga, as reported by Antara. ISPO serves as Indonesia's certification system to assess the compliance of palm oil plantations with sustainability criteria. Its reinforcement is a key government priority as the industry seeks to meet trade requirements and develop refined palm oil products.
Palm oil remains a strategic commodity for the national economy. In the third quarter of 2026, the plantation sector contributed 5.15 percent to the GDP, with palm oil being the largest contributor. Beyond generating foreign exchange, palm oil offers a distinct land-use advantage. According to Airlangga, palm oil plants can produce approximately 4 tons of oil per hectare, whereas other vegetable oil crops, such as sunflower, rapeseed, and soybean, produce less than 0.7 tons per hectare.
This productivity gap is a primary reason the government is encouraging higher yields on existing plantations rather than continued land expansion. To support this, the government is implementing the People's Palm Oil Replanting (PSR) program, providing infrastructure and facilities, and enhancing farmer capabilities through technical training and scholarships. The replanting program aims to replace less productive trees with new plantings to increase overall yields.
According to data provided by Airlangga, Indonesian palm oil productivity increased from 52.76 million tons to 56.55 million tons in 2025. The government forecasts that production in 2026 will reach approximately 60 million tons. Meanwhile, domestic consumption is expected to be around 27.5 million tons, with total exports projected to reach about 35 million tons for the full year.
Airlangga acknowledged that the palm oil industry faces complex challenges, necessitating collaboration between the government, business actors, farmers, and international partners. He expressed confidence that the IPOC 2026 forum can serve as a platform to discuss industry issues and find solutions to ensure that the Indonesian oil industry remains a responsible contributor to global food security, energy stability, and sustainable economic growth.
Source: Antara News Agency