Haris Darmawan, Director of the Downstream Plantation Products Division at the Indonesian Ministry of Agriculture, explained that plantation exports are a pillar of the Indonesian economy, particularly in terms of their contribution to non-oil and gas exports and the country's foreign exchange earnings. Commodities such as palm oil, cocoa, and coconut have become pillars of Indonesia's presence in global markets.

According to him, the industry not only contributes billions of dollars in foreign exchange annually but also provides employment opportunities for millions of people, improves farmers' welfare, and promotes regional economic growth.

“Indonesia plays a strategic role in providing food, energy, and global industry. However, behind this immense potential, we also face obstacles and challenges,” he said during his speech at the 2025 Plantation Agricultural Complex Performance Annual Scientific Assessment (ETIKAP) in Jakarta in mid-June 2025, representing the Minister of Agriculture.

Between 2021 and 2024, the national palm oil situation may lead to an increase in the total palm oil area to 16.83 million hectares. This aligns with Presidential Instruction No. 8 of 2018, which addresses the postponement and evaluation of oil palm plantation permits, as well as the enhancement of oil palm plantation productivity, with a greater focus on intensification and revitalization in oil palm development.

According to Haris, the obstacles and challenges in oil palm development are not only low productivity, averaging 3.8 tons per hectare per year, but there is still potential to reach 5-6 tons per hectare per year. Indications suggest that 3 million hectares of oil palm are located in forest areas, with some oil palm plantations lacking legal status (SHM, HGU, STDB), and commercial interference and conflicts persist. As a result, coordination between PBS/PBN and smallholder plantations has decreased, and in downstream sectors, the utilization of oil palm by-products is not optimal.

In addition to palm oil, coconut and cocoa commodities are also expected to face significant challenges and opportunities. As two of the country's primary commodities supporting the economy, cocoa and coconut plantations play a strategic role in enhancing food security, increasing exports, and providing employment opportunities in plantation-centric regions. However, to ensure their continued prosperity in this challenging era, innovative and adaptive strategies are required.

Haris explained that to manage sustainable Indonesian agriculture, collaboration between the government, industry, and civil society is essential to ensure a balance between economic, social, and environmental considerations. These efforts involve various strategies, such as crop recovery and productivity improvement, downstream and product diversification, sustainability certification and standards (e.g., the Indonesian Sustainable Palm Oil (ISPO) certification), and the use of new technologies to enhance efficiency and productivity.