RRI.CO.ID, Jakarta - Strengthening quality standards is key to increasing the competitiveness of Indonesian palm oil exports. In addition to downstream processing, compliance with sustainability standards, certification, and traceability systems are key to maintaining market access and expanding exports.

Researcher at the Center of Economic and Law Studies (Celios), Isnawati Hidayah, said that Indonesia can no longer rely solely on its status as the world's largest palm oil producer. She said that future export competitiveness will increasingly be determined by the ability to meet sustainability, traceability, and low-emission standards.

"Indonesia needs to shift from exporting intermediate products to downstream products with higher added value and technological content so that it is not continuously dependent on fluctuations in primary commodity prices," Isnawati said in Jakarta on Tuesday, July 14, 2026, as quoted by Antara.

Executive Director of the Institute for Development of Economics and Finance (Indef), Esther Sri Astuti, believes that in addition to strengthening quality standards, Indonesia must diversify its exports beyond crude palm oil (CPO) to include value-added products such as biodiesel, cosmetics, soap, detergent, lubricants, and oleochemicals.

She added that compliance with regulations and standards in each destination country is essential for maintaining competitiveness, particularly in the European market, which enforces strict sustainability requirements.

The government is also strengthening quality standards by expanding the Indonesian Sustainable Palm Oil (ISPO) certification to the downstream sector. The quarantine, certification, and export service systems are continuously being strengthened to ensure that Indonesian palm oil products meet international requirements.

These standards were successfully implemented when 14,000 tons of palm kernel expeller (PKE) were exported from Lampung to New Zealand after meeting that country's sanitary and phytosanitary requirements. The inspection process and issuance of phytosanitary certificates guarantee that commodities meet international standards, ensuring their acceptance in the export market.

Researcher at the Center of Reform on Economics (CORE) Indonesia, Eliza Mardian, added that increasing competitiveness requires investing in a national digital traceability system and researching how to produce high-value products.

She added that sustainability and traceability certifications increase buyer confidence and strengthen the position of Indonesian palm oil products in the premium market. ***