Merangin Backs Indonesia's B50 Biodiesel Program to Accelerate Palm Oil Downstream Development

The commitment was conveyed by Merangin Regent H. M. Syukur after attending the AKPSI Workshop and Palm Oil Expo 2026, themed "Palm Oil for the People," held in South Jakarta. The event brought together regional governments, industry stakeholders, smallholders, and state-owned enterprises to discuss the future of Indonesia's palm oil sector. According to an official statement obtained by on Friday (July 10), Syukur said the B50 mandate—which blends 50% palm-based biodiesel with 50% conventional diesel fuel—will play a vital role in reducing Indonesia's dependence on imported fossil fuels while creating greater added value for domestically produced palm oil. He emphasized...

Indonesia Prioritizes Productivity, Downstream Development, and Smallholder Empowerment in 2026 Palm Oil Policy

According to , citing the "Ngobrol Sawit 2026" webinar held in Jakarta on Tuesday (July 7), Ali Jamil emphasized that the palm oil sector remains one of Indonesia's most strategic industries, supporting economic growth, employment, food security, and energy resilience. Indonesia currently manages approximately 16.83 million hectares of oil palm plantations, producing around 45.4 million tonnes of crude palm oil (CPO), making the country the world's largest palm oil producer. Beyond production, the industry contributes significantly to the national economy, generating approximately US$22.85 billion in export earnings from 32.34 million tonnes of exports. The sector also provides employment for around...

AKPSI National Meeting: Gorontalo Pledges Stronger Palm Oil Downstream Industry Through Cross-Sector Partnerships

The commitment was conveyed by Deputy Regent Tonny S. Junus during the 2026 National Working Meeting (Rakernas) and Workshop of the Association of Indonesian Palm Oil Producing Regencies (AKPSI), held at Bidakara Hotel in South Jakarta on Tuesday. Carrying the theme "Palm Oil for the People," the annual gathering brought together central and regional government representatives to align strategies for strengthening Indonesia's sustainable palm oil sector while enhancing the value-added potential of one of the country's leading agricultural commodities. Speaking during the event, Tonny emphasized that Gorontalo is ready to play a greater role in expanding downstream palm oil industries...

Modi's Indonesia Visit Highlights Strategic Trade Ties as Palm Oil Remains a Key Export Commodity

According to a report by Rubix Data Sciences, Indonesia remained India's second-largest trading partner in ASEAN during the 2026 fiscal year (FY2026), with bilateral merchandise trade valued at US$24.8 billion. Singapore retained the top position with total trade reaching US$36.1 billion. As reported by news18.com and cited by , overall trade between the two countries has moderated in recent years. Merchandise trade declined from US$38.8 billion in FY2023 to US$24.8 billion in FY2026, reflecting a compound annual decline of approximately 14%. The slowdown was largely driven by a sharp contraction in India's exports to Indonesia, which dropped from US$10 billion...

Indonesia Tightens Environmental Oversight with New Regulation, Raising Compliance Bar for Palm Oil Industry

According to the regulation obtained by on Monday (July 6, 2026), the new policy replaces Ministry of Environment and Forestry Regulation No. 14 of 2024, which is considered no longer aligned with the latest legislative developments. The government said the updated framework aims to improve environmental supervision through greater transparency, efficiency, effectiveness, and legal certainty for businesses. The regulation is particularly significant for Indonesia's palm oil sector, where plantation companies and processing mills are required to comply with a wide range of environmental obligations, including environmental approvals, wastewater treatment, emission control, waste management, and continuous implementation of environmental management and...

Palm Oil Maintains Key Role as Indonesia's Non-Oil Trade Surplus Reaches US$16.31 Billion

Although Indonesia recorded a trade deficit of US$1.61 billion in May 2026, cumulative trade data for January–May 2026 still showed an overall trade surplus of US$4.03 billion, driven largely by the country's strong non-oil and gas export performance. Trade Minister Budi Santoso said Indonesia's non-oil sector continues to serve as the backbone of the country's export performance. "Although Indonesia recorded a trade deficit in May 2026, cumulatively the country still posted a surplus. This demonstrates the resilience of Indonesia's non-oil trade amid global economic challenges," Budi said in an official statement quoted by on Sunday (July 5, 2026). According to...

Indonesia Eyes Stronger Palm Oil Exports to Belarus Through Expanding Eurasian Trade Partnership

The commitment was reaffirmed during the Indonesia–Belarus Business Forum and Business Matching, held in Jakarta, where government officials and business leaders explored new opportunities for trade, investment, and industrial collaboration. Organized by the Indonesian Chamber of Commerce and Industry (KADIN) and the Belarusian Chamber of Commerce and Industry (BelCCI), the forum served as a platform for strengthening business-to-business partnerships while promoting Indonesia's leading export commodities, including palm oil and its downstream products. In an official statement received by on Saturday (July 4), Coordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia remains committed to increasing exports of high-value products to...

POPSI Calls for Transparency on Indonesia's Rp600 Trillion Palm Oil Under-Invoicing Claim

The statement follows renewed public debate after Agriculture Minister Andi Amran Sulaiman said Indonesia could be losing between Rp500 trillion and Rp600 trillion in state revenue each year because of under-invoicing practices in the palm oil trade. POPSI Chairman Mansuetus Darto said the organization fully supports government efforts to improve state revenue, strengthen export governance, and enforce the law against proven violations. However, he stressed that any policy overhaul affecting Indonesia's palm oil export system must be supported by transparent and scientifically accountable evidence. "We support stronger law enforcement and efforts to increase state revenue. However, if such claims are...

BRIN Develops Pyrolysis Technology to Turn Oil Palm Empty Fruit Bunches into Renewable Energy

The initiative is expected to strengthen Indonesia's energy transition while promoting a circular economy by maximizing the utilization of oil palm biomass that has traditionally been underutilized. According to a statement received by on Thursday (July 2, 2026), Dieni Mansur, Head of the Biomass Oil Pyrolysis Research Team at BRIN's Research Center for Molecular Chemistry, said biomass conversion plays a strategic role in reducing the country's dependence on fossil fuels while creating new value from agricultural residues. "Pyrolysis oil is being developed to support Indonesia's energy diversification. Meanwhile, oil palm empty fruit bunches are generated in enormous volumes, making their...

GAPKI: Palm Oil Export Oversight Already Robust, Stronger Law Enforcement Needed

The view was presented by Dr. Yustinus Lambang Setyo Putro, Chairman of GAPKI's Taxation and Fiscal Affairs Division, during an Indonesian Tax Consultants Association (IKPI) webinar titled "Under Invoicing and State Revenue Leakage: Perception or Reality?" Yustinus explained that every palm oil export shipment passes through several layers of supervision before leaving Indonesia. The process includes export approval through the Indonesia National Single Window (INSW), document verification using the Directorate General of Customs and Excise's CEISA system, physical inspections for selected commodities, and foreign exchange monitoring via Bank Indonesia's Integrated Foreign Exchange Monitoring System (SIMODIS). In addition, the tax authority...

Prof Hariyadi Urges Productivity-Driven Palm Oil Growth Through Intensification Instead of Expansion

Speaking during his inaugural professorial lecture on Saturday, Prof. Hariyadi introduced the concept of a “New Nexus”, an integrated framework that combines higher productivity, environmental sustainability, and technological innovation as the foundation for the future development of Indonesia’s palm oil sector. He argued that productivity among independent smallholders remains significantly below its potential, making intensification a more effective strategy than opening new plantations. “Smallholder productivity is still below 60% of its potential. Therefore, expanding plantation areas should not be the primary solution unless it is supported by quality planting materials and proper nutrient management,” Prof. Hariyadi said, according to a...

Palm Oil Mills Without Plantations Could Undermine Indonesia's EUDR Compliance, Researcher Warns

According to an analysis by Dr. Veritia, a researcher in Palm Oil Economics and Management at Pamulang University (Unpam) and Editor-in-Chief of Kabar SDGs, Indonesia's palm oil industry is facing increasingly complex compliance demands from both domestic regulations and export markets. Integrated plantation companies and conventional palm oil mills are required to comply with a broad range of environmental, labor, waste management, and sustainability requirements, including implementation of NDPE (No Deforestation, No Peat, No Exploitation) commitments. At the same time, export markets are tightening traceability requirements. One of the most significant regulations is the European Union Deforestation Regulation (EUDR), which...

POSCO International's US$500 Million Global Bond Draws US$2 Billion in Orders as Indonesian Palm Oil Business Boosts Investor Confidence

The five-year U.S. dollar-denominated bond, issued on June 23, was oversubscribed by nearly four times, allowing the South Korean trading and investment company to secure financing at a lower yield than initially indicated due to robust global demand. The successful issuance marks a significant milestone in POSCO International's efforts to diversify its funding sources while strengthening its position as a global business spanning the energy, materials, and food sectors. According to a company statement received by on Sunday, investor confidence remained resilient despite continued volatility in global financial markets driven by geopolitical tensions in the Middle East. Ahead of the...

Indonesia Launches B50 Biodiesel Mandate on July 1, Palm Oil Industry Expected to Gain Rp24.68 Trillion

Under the new mandate, diesel fuel will contain 50% palm oil-based biodiesel blended with 50% conventional fossil diesel, continuing the country's progressive biodiesel program that has evolved from B20 to B30, B40, and now B50. Speaking in Jakarta, Minister of Energy and Mineral Resources Bahlil Lahadalia said all technical evaluations and field trials had been successfully completed, paving the way for nationwide implementation. "The technical trials carried out by our team at the Ministry of Energy and Mineral Resources, led by the Director General of New, Renewable Energy and Energy Conservation (EBTKE), Prof. Eniya, have produced very encouraging results," Bahlil...

SPKS Calls for Greater BPDP Funding to Expand Sustainable Palm Oil Certification for Smallholders

In a statement received by on Friday (June 26), SPKS said certification costs and technical assistance should become national priorities to enable more independent oil palm smallholders to meet both Indonesian Sustainable Palm Oil (ISPO) and Roundtable on Sustainable Palm Oil (RSPO) standards. The organization also encouraged plantation companies to play a more active role in financing certification programs, noting that independent smallholders remain the primary suppliers of fresh fruit bunches (FFB) to the downstream palm oil industry. Supporting farmers' certification, SPKS said, should therefore be viewed as a shared responsibility across the supply chain. The call is reinforced by...

Attorney General Finds No Evidence Linking PT Salim Ivo Mas Pratama to Palm Oil Export Fraud Probe

Speaking to reporters at the AGO headquarters in Jakarta on Tuesday (June 23), Syarief Sulaiman Nahdi, Director of Investigation at the Office of the Assistant Attorney General for Special Crimes (JAM Pidsus), said investigators concluded that the company markets its products solely to meet domestic demand rather than for export activities, which remain the primary focus of the investigation. "PT Salim Ivo Mas Pratama sells its products to serve the domestic market," Syarief said. He added that investigators have not identified any facts or evidence indicating the company's involvement in the alleged export value manipulation scheme.   Executives of PT...

More Than 100 South Sumatra Smallholders Strengthen Oil Palm Cultivation Skills Through Training Program

The training, held in Palembang from June 18–23, 2026, was conducted under the Oil Palm Plantation Human Resources Development Program through a collaboration between the Palm Oil Plantation Fund Management Agency (BPDP), the Directorate General of Plantations under the Ministry of Agriculture, and IPB Training. The initiative was designed to address persistent challenges facing smallholders, including the use of uncertified planting materials, suboptimal cultivation practices, and plantation management inefficiencies. Although independent growers manage more than 42% of Indonesia’s total oil palm plantation area, productivity levels often remain below industry potential. Participants received comprehensive instruction covering plantation regulations, nursery management, land...

Banana Intercropping in Oil Palm Plantations Requires Careful Management, Says PPKS Expert

Djan Muhayat, a practitioner from the Indonesian Oil Palm Research Institute (PPKS), said banana cultivation can coexist with oil palm as long as plant populations are carefully controlled and do not create excessive competition for sunlight. Speaking to based on information released by PPKS on Tuesday (23/6/2026), Djan noted that while intercropping can provide economic benefits, it may also lead to lower Fresh Fruit Bunch (FFB) production compared with plantations managed under ideal palm densities without additional shading. Particular attention should be given to banana varieties such as Kepok, which produce numerous suckers and can rapidly dominate growing space if...

STAA Joins RSPO to Strengthen Access to Sustainable Palm Oil Markets

For Indonesia’s palm oil industry, the European market has evolved beyond a traditional export destination. Buyers now demand assurances that palm oil products originate from deforestation-free supply chains, fair labor practices, and transparent governance systems. “European markets increasingly require RSPO certification as a minimum standard,” said Andra Tetuko, Head of Sustainability at STAA, in an interview with . The company’s move comes as it expands downstream operations, including a new refinery in Dumai with a processing capacity of 2,000 tons per day. Beyond market access, STAA has committed to reducing greenhouse gas emissions by 30 percent by 2030. RSPO certification...

Indonesia Expands Palm Seed Exports to Colombia with 10,500 Premium Germinated Seeds

The Indonesian Quarantine Agency, through the North Sumatra Animal, Fish and Plant Quarantine Center (Karantina Sumut), recently facilitated the export of 10,500 DxP Dami G-2 germinated oil palm seeds via Kualanamu International Airport. The shipment forms part of a larger export quota of 300,000 palm seeds approved by the Indonesian government in April 2026. Prayatno N. Ginting, Head of Karantina Sumut, said that by mid-June 2026, total exports under the quota had reached 60,500 seeds. Additional shipments to Colombia are scheduled to continue in stages through August. “The growing demand from Colombia reflects international confidence in Indonesia’s superior palm genetics....