The Ministry of Industry reported that the palm oil processing sector played a significant role in Indonesia's food industry export performance, contributing 70% to the trade balance in 2023. Setia Diarta, Director of Forest Product and Plantation Industry at the Ministry, highlighted that from January to September 2023, downstream palm oil industries contributed USD 20.57 million out of a total of USD 30.1 million in food industry exports. He emphasized that the palm oil processing industry accounted for approximately 70% of the food industry, making it a crucial contributor. In terms of quantity, the sector exported 22.9 thousand tons of food commodities during the stated period, marking a 19.07% increase compared to the previous quarter. Setia Diarta underscored the sector's vital role in supporting the stability and resilience of Indonesia's national economy, warning of potential trade balance imbalances if the export achievements of palm oil derivative commodities were excluded.
He stressed the importance of recognizing the palm oil processing industry's role in Indonesia's industrial development. Additionally, within the broader industrial sector scheme, the agro-industry, including palm oil processing, contributed 8.53% to the country's foreign exchange in 2023. Furthermore, Setia Diarta outlined a roadmap for downstream palm oil industry development through Palm Indonesia Emas 2045, structured into three stages: Milestones 1, 2, and 3, each with a 10-year target focus interval. In conclusion, the palm oil processing sector emerged as a pivotal player in Indonesia's food industry export performance, significantly contributing to the country's trade balance in 2023. Setia Diarta's remarks underscored the sector's strategic importance in supporting economic stability and growth, emphasizing the need to recognize its role in national industrial development and outlining a roadmap for its future advancement.
