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JAKARTA – Indonesia's palm oil industry, which generates more than US$20 billion in annual export revenue, requires a more cohesive alliance among producing nations to defend its market position and counter mounting trade barriers, according to a senior official of the Indonesian Chamber of Commerce and Industry (Kadin).
Saleh Husin, Kadin's Deputy Chairman for Industry, said on Wednesday, August 26, 2026, in Jakarta that strengthening cooperation with other palm oil producing countries is a strategic imperative. He emphasized that palm oil remains one of Indonesia's foremost foreign exchange earners, and that unified action is essential to protect the sector's interests in an increasingly protectionist global trading environment.
'Indonesia needs to build alliances with other producing countries to strengthen bargaining position, maintain market access, face trade barriers, and maintain the stability of the global palm oil market,' Husin stated.
He pointed to the Council of Palm Oil Producing Countries (CPOPC) as the natural platform to coordinate these efforts, suggesting that the body can serve as the primary forum where producer nations articulate shared concerns and consolidate their stance in international trade negotiations.
Husin outlined several areas where joint action through CPOPC could deliver tangible results, including trade diplomacy, the reinforcement of sustainability principles, global promotion of palm oil, the development of new markets, and collaborative research and innovation.
He acknowledged that the Indonesian government, through the Plantation Fund Management Agency (BPDP), has so far been largely effective in cultivating international partnerships for the sector. Nevertheless, he called on BPDP to assume a more catalytic role, channeling the industry's substantial resources to support strategic initiatives at the global level.
In the longer term, Husin argued, a more coordinated posture would allow Indonesia to exert greater influence over the governance of global palm oil trade and protect the foreign exchange earnings that the commodity delivers to the national economy.
Responding to these proposals, Musdhalifah Machmud, Deputy Secretary General of CPOPC, confirmed that the organization is intensifying its advocacy work on behalf of the palm oil sector. She said CPOPC is pursuing two core objectives: securing stable and predictable market access for its member countries, and improving the positive perception of palm oil among international audiences.
These goals, she explained, are pursued through high-level dialogues and partnerships that bring together governments, industry institutions, and sectoral organizations.
Machmud added that CPOPC continues to champion sustainability frameworks at the international level, both to support producing countries in adopting recognized standards and to reassure consumer markets about the environmental credentials of palm oil supply chains.
Education and outreach form a third pillar of CPOPC's strategy. The Council is working to disseminate science-based information on the benefits and properties of palm oil, while also engaging the next generation of communicators through its Young Elaeis Ambassadors programme.
Since 2023, CPOPC has partnered with 23 young professionals drawn from both producing and consuming countries, training them to share accurate, evidence-based information about the commodity across social media channels.
'CPOPC realizes that young people today have a strong influence through social media. Young people also have a high interest in social and progressive issues, including in terms of the environment,' Machmud concluded.
Source: VOI.ID