RRI.CO.ID, Jakarta - The Indonesian government is strengthening governance of the palm oil industry by mandating the implementation of the Indonesian Sustainable Palm Oil (ISPO) standard. The policy applies to all palm oil businesses and is intended to ensure sustainable growth while maintaining competitiveness in the global market.

Agriculture Minister Andi Amran Sulaiman said sustainability standards are essential and will serve as the foundation for the future of the national palm oil industry. “Indonesia must not retreat. Palm oil is the economic strength of the nation,” he stated in an official release on Tuesday, March 9, 2026.

He emphasized that palm oil governance must be stronger and more sustainable. The government is also encouraging downstream development to expand economic benefits. The transformation of the plantation sub-sector is aimed at developing derivative industries, which are expected to increase the added value of palm oil commodities.

Indonesia is aiming to move beyond exporting raw materials by positioning itself as a global hub for the downstream palm oil industry.

Acting Director General of Plantations, Abdul Roni Angkat, said palm oil has a competitive advantage, noting that the commodity is more productive than other vegetable oils.

The national palm oil plantation area covers 16.83 million hectares, with crude palm oil production in 2025 estimated at 48.12 million tons. With this capacity, Indonesia remains the world’s largest palm oil producer, playing a significant role in meeting global vegetable oil demand.

The palm oil sector contributes to national foreign exchange and absorbs a large workforce. More than 16 million workers depend on the industry, including around 5.2 million smallholders.

Roni added that the government continues to strengthen assistance to farmers through strategic programs such as palm oil regeneration, support for production facilities, and human resource capacity development. “Palm oil employs a large amount of labor. Therefore, productivity and sustainability must be implemented simultaneously,” he said.

By strengthening ISPO standards, the government expects the palm oil industry to become more resilient. Downstreaming is also projected to reinforce the national economy. Palm oil is considered to have a strategic role in sustainable development, supporting both national food and energy security. (Gusti Panji/Lasti Martina)