GAPKI: Palm Oil Saves Indonesian Economy During Crises

PONTIANAK – The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said that the commodity of palm oil has proven itself as the saviour of Indonesian economy when facing crises.

“The palm oil has saved Indonesian economy three times during national economic crisis in 1998, global economic crisis 2008, and during the Covid-19 pandemic when most of economic sectors saw minus growth and the global economy was paralyzed. During those crises, the palm oil industries still grew robustly,” Eddy Martono said when addressing the 8th Borneo Forum 2025 in Pontianak, West Kalimantan on Thursday (21/8/2025).

But despite the fact, Eddy Martono said that there are a number of problems national and global problems, facing the national palm oil industries.

Concerning the global problems, Eddy said not all stand as a threat to palm oil. He cited the example of trade war launched by the USA. “While the tariff war by USA has posed challenges to others, it has become an opportunity for palm oil industry of Indonesia,” he said.

Eddy said that Indonesia could take advantage from such momentum for the sake of palm oil industries. “Unlike to others, the global tariff war has created bigger opportunity for Indonesia to become the leader of global market of palm oil. But it can only be realized if the palm oil industries are managed more properly, transparently, and inclusively,” said Eddy Martono.

He said that based on data from Statistics Indonesia (BPS), in 2023 there are a total of 2,281 palm oil companies operating in Indonesia. But only 749 companies of the total palm oil companies become member companies of GAPKI, representing a total plantation areas of 3.7 million hectares or around 30% of the total plantation areas owned by the total 2,281 palm oil companies.

Meanwhile, in West Kalimantan alone there are a total of 325 palm oil companies, but only 78 companies become member companies of GAPKI. “This is our big home work that we could not yet tackle,” said Eddy Martono.

The 8th Borneo Forum, which was organized by GAPKI in Pontianak on 21–22 August 2025, is an important forum for discussions of Indonesian palm oil. The forum brings together farmers, cooperatives, companies, government and other stakeholders to discuss latest development of palm oil industries.

During the 8th Forum, one of important issues being discussed is the Ganoderma disease, which attacks roots of oil palm trees and potential to damage the palm plantations for the next decades. “This Ganoderma disease could not be tackled by farmers alone. We have to jointly overcome it,” said Anes, an oil palm smallholder from Kembayan, Sanggau regency, West Kalimantan province.

Besides the Ganoderma disease, the forum participants also discussed about certification of Indonesian Sustainable Palm Oil (ISPO), replanting program (PSR) for smallholders’ palm plantations, intercropping methods, palm oil-based bioenergy amid the global energy crisis, and other issues. (*)