CPO downstreaming key to boosting Indonesia's exports: minister
Photo archive - Worker loads oil palm fresh fruit bunches at PT Perkebunan Nusantara IV area in Deli Serdang, North Sumatra, Thursday (October 24, 2024).
Jakarta (ANTARA) - Agriculture Minister Andi Amran Sulaiman hailed palm oil downstreaming as a “strategic weapon” to boost Indonesia’s exports, following a 7.32 percent growth in crude palm oil (CPO) and derivative export values in the first half of 2026.
Speaking in Jakarta on Tuesday (August 4), Amran underscored Indonesia's market dominance alongside neighboring Malaysia, pointing out that the two nations jointly control approximately 80 percent of global CPO production.
"We are number one in the world. CPO downstreaming is a strategic weapon for Indonesia," he noted.
The minister emphasized that strengthening agricultural exports must continue through increased added value and industrial processing, to deliver greater benefits to the national economy and farmer welfare.
According to Statistics Indonesia (BPS), the agricultural sector's export performance showed a positive trend from January to June 2026, largely driven by rising global CPO prices.
BPS Deputy for Distribution and Services Statistics Ateng Hartono confirmed that the export value of CPO and its derivative products expanded by 7.32 percent year-on-year during the first six months of 2026.
"From January to June 2026, the export value of CPO and its derivatives grew 7.32 percent compared to the same period last year," Ateng stated in Jakarta on Monday (August 3).
In June 2026, the export value of agricultural, forestry and fishery commodities reached US$485.8 million. Cumulatively, from January to June 2026, the sector’s export value reached US$2.59 billion, marking a 1.84 percent increase compared to the same period in 2025.
This commodity growth contributed to Indonesia's total exports, which reached US$140.81 billion in the first six months of the year, a 4.13 percent increase year-on-year. Non-oil and gas exports rose 4.90 percent to US$134.58 billion.
The animal and vegetable fats and oils category (HS15), which includes CPO and its derivatives, served as a primary growth driver. In June 2026, total exports reached US$25.46 billion, up 8.84 percent year-on-year, while the HS15 group recorded a 10.45 percent increase.
BPS data revealed that CPO, iron and steel, and coal collectively accounted for 28.30 percent of Indonesia's total non-oil and gas exports during the first half of 2026.
Among these three mainstay commodities, CPO achieved the highest growth rate at 7.32 percent, whereas coal grew by 0.63 percent and iron and steel exports declined by 0.16 percent.
