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GAPKI Calls For Strengthening Of Palm Partnerships With Africa

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TANGERANG – The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono emphasized the importance of strengthening trade and investment cooperations between Indonesia and African countries, especially in the palm oil sector. He made the statement during a business discussion on “Opportunities for Trade and Investment Partnerships in Africa” as part of the Trade Expo Indonesia (TEI) 2025 on 15 – 19 October 2025 in ICE BSD City, Tangerang.

GAPKI Chairman Eddy Martono (center) at the Business Forum: Panel Discussion, ‘Opportunity for Trade and Investment Partnerships in Africa.’ (Tangerang, 18/10/2025) Doc. GAPKI

Eddy said that the palm oil industries stand as the backbone of Indonesia’s non-oil-gas exports. Although Indonesia’s palm oil exports declined from US$39 billion in 2022 to US$28 billion in 2024, the palm oil sector is still the largest contributor to the national trade balance, accounting for around 10–13% of the total national exports until mid-year 2025.

Currently, Indonesia has a total area of oil palm plantations at 16.8 million hectares with production of 52.8 million tons of crude palm oil (CPO) per year. Around 40% of the total plantations are owned by smallholders, indicating the big socio-economic impacts to the people in rural areas.

The national palm oil production showed an increase of 11.1% (July 2025 compared to July 2024), in line with the increase of domestic consumption — especially for the mandatory program of biodiesel that had exceeded the consumption for foods. But the palm oil exports were still under pressures due to the slowing down of global production and the increase of local consumption.

Eddy said that Africa is a strategic market that has been continually growing. In 2024, most of Indonesia’s palm oil exports to Africa are in the form of refined palm oil. GAPKI and the government are exploring opportunities in countries of East and South Africa, such as Tanzania, Kenya, and Namibia, for trading and research of oil palm.

Business Forum: Panel Discussion. “Opportunity for Trade and Investment Partnerships in Africa”. 18/10/2025

“Cooperation with Africa has a historical value as oil palm was originated from the continent. Now, it’s time for us to develop our mutually beneficial partnerships in developing technology, superior seedlings, and  investments in down-streaming,” said Eddy.

GAPKI is also pushing for innovations to increase efficiency of production, which include:

  • The use of biofertilizer to maintain land fertility and reduce emissions.
  • Mechanization and precision agriculture to reduce cost of production.
  • Research of Ganoderma to address basal stem rot disease.
  • Exploration of new genetic resources in Africa to develop drought- and disease-resistant varieties.
  • Strengthening policy advocacy related to export taxes and the national biodiesel program.
  • As a strategic partner of the government, GAPKI affirms its commitment to sustainable palm oil development through the implementation of the Indonesian Sustainable Palm Oil (ISPO). GAPKI urges all its members to implement sustainability principles in their plantation and industrial practices. (*)

 

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