The Indonesian Palm Oil Association (Gapki) reported that the palm oil industry contributed USD 9.78 billion to the country’s foreign exchange earnings by May 2024, equating to 10.01% of Indonesia’s non-oil and gas exports. Gapki Chairman Eddy Martono shared this during a press conference in Belitung on 27 August 2024. Despite this significant contribution, the export performance of the palm oil industry has seen a decline in recent years. In 2021, the industry generated USD 34.9 billion in foreign exchange, which increased to USD 37.7 billion in 2022. However, a decrease was observed in 2023, with earnings falling to USD 29.54 billion.

Eddy pointed out that over the past five years, palm oil production has stagnated, and productivity levels have been less than satisfactory. In 2020, crude palm oil (CPO) production and its derivatives reached 51,583 tons, dropping slightly to 51,300 tons in 2021, and further to 51,248 tons in 2022. In 2023, production saw a slight increase to 54,844 tons, with production as of May 2024 standing at 22,145 tons. To address the production challenges, Eddy emphasized the importance of implementing the replanting program (PSR) for smallholder palm plantations. However, he acknowledged that the program faces obstacles such as land overlaps and conflicting policies, which have delayed its progress. This has resulted in stagnant production levels, highlighting the urgent need to improve productivity in the sector.

Source: https://nasional.kontan.co.id/news/kontribusi-devisa-industri-sawit-capai-us-978-miliar-per-mei-2024