Industry leaders and academics are calling on the government to formally designate palm oil as a National Strategic Commodity, highlighting its growing role beyond agriculture into national sovereignty, food security, and the global energy transition. Experts emphasized that the palm oil sector supports around 16.5 million households across Indonesia, from smallholder farmers to industrial workers, while contributing significantly to regional development and economic resilience. Its broad impact underscores palm oil’s importance as a key driver of inclusive growth and long-term national stability.
From a macroeconomic perspective, palm oil remains a major contributor to Indonesia’s trade performance, generating USD 39 billion in export revenue in 2022 and supporting a trade surplus of USD 56 billion. As the world’s largest producer, Indonesia manages 17.1 million hectares of plantations and produces 49.4 million tons of crude palm oil. Experts advocate a forward-looking strategy focused on sustainability and downstream development, including functional food production and renewable energy applications. With a 48% share of the global market, palm oil is also viewed as a strategic geopolitical asset that can strengthen Indonesia’s position in international trade while promoting environmentally responsible and community-based industry practices.
