JAKARTA – President Prabowo Subianto said there are at least four countries asking for shipment of palm oil from Indonesia. The request was submitted by the countries’ heads of state during his recent visits to a number of countries.
He said that it is because now Indonesia is the world’s largest producer and exportter of palm oil. “Our palm oil production is the largest in the world. Don’t underestimate it. Our palm oil product has now become a very important and strategic commodity in the global market,” Prabowo said during the halal bihalal event held by military and police retirees (TNI-Polri) in Jakarta, which was also broadcast online on Tuesday (6/5/2025).
“Everytime I went to one foreign country, they ask for it. Egypt, Pakistan, India, and even Europe. ‘Your Majesty, if possible, prioritize us for shipment of palm oil to our country,” the President quoted them as saying.
President said that from palm oil there are at least 65-67 products that can be produced. Among the products include the product of bioenergy. “Actually, by optimizing palm oil for energy, we don’t need to import oil fuels from any country,” he said.
“And we should know that we import oil fuels at almost US$40 billion per year. But actually, we don’t need to import,” he said.
Prabowo has stated that his administration has set a target of energy self-sufficiency within the next five years. “Many people doubt the energy self-sufficiency target. But we have to realize it. We have to stand on our two feet,” he said.
Previously, Business Competition Supervisory Commission’s (KPPU) Member Eugenia Mardanugraha said that Indonesia has not yet had control over palm oil prices at the global market, despite the fact that it is the world’s largest producer and exporter of palm oil.
Based on data from the National Research and Innovation Board (BRIN) 2024, Indonesia contributed almost 59% of global production of palm oil. Malaysia came the second largest producer with 24% of global production, while the other countries contributed 17%.
Indonesia has a total oil plantation areas of 16.38 million hectares with total production of palm oil last year reaching 46.8 million tons. “In terms of production, Indonesia is giant. Other countries, even Malaysia, could not outcompete us. Big countries like USA and China do not have palm oil. Vietnam and Thailand produce only in small quantities, so that it’s almost impossible to compete,” Eugenia said on Monday (28/4/2025).
But she said that such dominance in production could not yet translate into controlling the palm oil prices at the global market. “Those who control prices are not us, but Malaysia and Netherlands. We can only receive the prices they set,” said Eugenia.
Eugenia has called on the government, state-owned companies (BUMN), and the private sector to strengthen the palm oil trading center in Indonesia, which will then enable Indonesia to create more reasonable prices of palm oil at domestic market. (*)
