Airlangga: Palm Oil Still Key Pillar of Economy, Clean Energy Transition
14/11/2025 (Jakarta Globe), Jakarta - Chief Economic Affairs Minister Airlangga Hartarto reaffirmed that palm oil remains a backbone of Indonesia’s economy and clean energy strategy, backed by strong exports and a steady domestic market.
As of September, the trade balance recorded a $4.34 billion surplus, driven by 28.55 million tons of palm oil exports worth $27 billion. “And the palm oil industry remains Indonesia’s most important economic pillar,” Airlangga said at the 21st Indonesian Palm Oil Conference and 2026 Price Outlook in Nusa Dua on Thursday. “Up to September 2025, our trade balance posted a $4.34 billion surplus, with palm oil as one of the main contributors.”
He said palm oil continues to support economic resilience, with GDP growing 5.04 percent in the third quarter, investment hitting Rp 1,434.3 trillion, and inflation at 2.86 percent. India and China remain the biggest export markets, while Japan and New Zealand are growing destinations.
Airlangga noted favorable domestic conditions, with fresh fruit bunch prices near Rp 3,000 per kilogram. He highlighted efforts to strengthen the Indonesian Sustainable Palm Oil (ISPO) scheme. “The government is strengthening the ISPO certification system and developing an ISPO information platform to improve transparency, real-time tracking, and global competitiveness,” he said.
Indonesia is also advancing palm-based clean energy. The B40 biodiesel program will be upgraded to B50 in late 2026, with potential emissions cuts of 41.46 million tons of carbon dioxide equivalent or CO₂e. Palm-based sustainable aviation fuel is targeted for rollout within two to three years.
“Therefore, we call on all stakeholders to strengthen palm oil downstreaming to create added value, jobs, and a stronger national industry,” Airlangga added.
Separately, National Development Planning Minister Rachmat Pambudy said palm oil’s expansion, from 0.1 million hectares in 1950 to 17 million hectares today, requires careful management to balance sustainability and food security. He underlined the sector’s role in the Indonesia Emas 2045 vision, supporting renewable energy, downstream industries, and rural development, backed by recent regulatory reforms, ISPO strengthening, and smallholder empowerment.