Productivity boost needed to keep RI's palm oil lead, GAPKI says - ANTARA News Jawa Timur

📅 Published: Saturday, August 8, 2026 📖 2 min read 📊 403 words 📂 Categories: world-news

Jakarta (ANTARA) - The Indonesian Palm Oil Association (GAPKI) has said improving smallholder farmer productivity must be a shared priority so Indonesia can meet domestic demand while maintaining its position a...

According to GAPKI Chairman Eddy Martono, in a statement received here on Saturday, the palm oil sector has emerged as one of the main pillars of the national economy during difficult periods, thanks to its significant foreign exchange earnings and ability to sustain employment.

“During the pandemic, palm oil foreign exchange earnings reached around US$39.2 billion. Even when many sectors were laying off workers, the palm oil industry continued to create new job opportunities,” he said at the 9th Borneo Forum 2026 in Balikpapan, East Kalimantan, held from August 5 to 8, 2026.

He added that one of the strategic measures being continuously promoted is the acceleration of the Smallholder Palm Oil Replanting Program (PSR), supported by the Plantation Fund Management Agency (BPDP).

The program is expected to boost smallholder plantation productivity through the use of superior seeds, technology adoption, and continuous mentoring.

Meanwhile, East Kalimantan Deputy Governor Seno Aji said the future of the palm oil industry would become stronger if it rested on three pillars: resilience in facing change, courage to pursue innovation, and the ability to transform.

“Therefore, the East Kalimantan provincial government continues to encourage the development of palm oil-based downstream industries. We want East Kalimantan’s potential to generate greater added value, strengthen investment, develop derivative industries, and provide broader benefits for the public,” Aji said.

Statistics Indonesia (BPS) data shows that the export value of crude palm oil (CPO) and its derivatives reached US$4.69 billion from January to February 2026, a 26.40-percent increase from US$3.71 billion during the same period the previous year.

The increase was seen not only in value but also in volume, with exports rising from 3.33 million tons to 4.54 million tons over the same period.

According to an official GAPKI release dated March 13, 2026, Indonesia’s CPO production reached 51.66 million tons in 2025, up 7.26 percent, or around 3.5 million tons, from the previous year. Total CPO and palm kernel oil (PKO) production reached 56.55 million tons, an increase of 7.18 percent.

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