JAKARTA – The Indonesian government is preparing a big jump for the national palm oil industry by designing an extensification program to accelerate production increase, which will be started next year. The program will stand as an important foundation for the country to realize its ambitious target of crude palm oil (CPO) production at 100 million tons in 2045.
Acting Director General of Plantations at agriculture ministry, Abdul Roni Angkat said the oil palm extensification program is part of the government’s long term strategy to deal with the rising demand and strengthen the resilience of national supply.
In his presentation at the 21st Indonesia Palm Oil Conference (IPOC) 2025 in Nusa Dua, Bali, he said that the government is preparing an additional palm plantations up to 3.0 million hectares during the next two decades.
“Hopefully, in 2045 we can produce 100 million tons of CPO. For such purpose, we need to expand our palm plantation areas. It’s a strategic need,” he said.
As an initial step, the government targets to open 600,000 hectares of new plantation areas, with the largest portion—around 400,000 hectares—allocated for smallholders as plasma plantations.
The expansion will be prioritized in Jambi, South Sumatra, Bangka Belitung, West Kalimantan, Central Kalimantan, North Kalimantan, and South Sulawesi.
Two state-owned companies, PT Agrinas and PalmCo, will be also offered to operate 200,000 hectares of the expanded plantations, while the private companies are also welcomed to take part in the expansion program.
Roni said that the expansion of palm plantation areas should be implemented based on the principles of sustainability and ensure that the smallholders not losing their source of income.
Besides the plantation expansion, the government will also accelerate the down-streaming process of palm oil, a sector described by Roni as “added value machine” of industry.
Biodiesel facility, DMO of cooking oil, margarine factory, bio propylene glycol, up to palm kernel processing will be increased in a number of provinces, including in North Sumatra (Sumut), Riau, Jambi, Kalimantan, and South Sulawesi (Sulsel).
The transformation is projected to create hundreds of thousands of new job opportunities and push up the contribution of palm oil to the growth of GDP. (*)
Sawitku.id. RI Genjot ekspansi Sawit dan Hilirisasi untuk Kejar 100 Juta Ton CPO Menuju 2045. https://www.sawitku.id/ekbis/81416255894/ri-genjot-ekspansi-sawit-dan-hilirisasi-untuk-kejar-100-juta-ton-cpo-menuju-2045. 15 November 2025
