JAKARTA – The palm oil industry has a strategic role in strengthening the national food resilience and in fulfilling the rising global demand for vegetable oils.
Having the highest productivity, efficiency and versatility, the palm oil is able to maintain the needed supply for foods, keep stable prices, and contribute to the efforts of developing more sustainable system of food production.
The Head of South East Asia Food and Agriculture Science & Technology (SEAFAST) Centre at Bogor University of Agriculture (IPB University), Puspo Edi Giriwono said currently Indonesia is the world’s largest producer and exporter of palm oil with production of crude palm oil (CPO) reaching around 53 million tons per year.
According to him, the production is not only sufficient for local needs but also yields a surplus to meet global demand, which has been increasing every year due to global economic growth and population growth.
“Indonesia’s palm oil production can fulfil the domestic need up to 100 percent. Even the production is surplus and can be used to fulfil the global demand,” Puspo said in Jakarta on Saturday (18/7/2026).
The right choice to meet rising global demand
Puspo projected that that the role of palm oil will become increasingly important as the global population grows, projected to reach between 10 and 11 billion people by 2050. During that period, global demand for vegetable oil is expected to reach approximately 250 million tons annually.
Given land constraints, increasing the productivity of existing oil palm plantations is considered more effective than opening up new plantation areas for other vegetable oils. Studies have proven that oil palm is the most land efficient if compared to other vegetable oil crops, including soybean, rapeseed and sunflower.
Oil palm tree produces heavily year-round, yielding 5 to 6 tons of oil per hectare per year. To produce such amount, other crops will require 5 to 8 times more land areas. It means that palm oil can be optimized to fulfill the rising global demand for vegetable oils without intensifying pressure on forest areas.
“As land becomes increasingly scarce, palm oil stands out as a high-productivity commodity capable of supplying the vegetable oil needs of the global population,” he said.
Red palm oil and down-streaming
Beyond boosting productivity, Puspo believes that strengthening the palm-based downstream industries must be continuously encouraged so that Indonesia can realize greater value-added benefits.
Palm oil currently serves as a raw material for a wide range of food products, including cooking oil, margarine, chocolate, and various processed foods. However, significant opportunities remain for developing high-value derivative products.
He cited examples of countries that have successfully processed palm raw materials through various industrial stages to create specialized food products with higher economic value.
“Almost all the food we consume contains palm oil due to its versatility and relatively affordable price,” he said.
Puspo also highlighted the potential of developing red palm oil as a promising downstream product.
According to him, red palm oil is rich in antioxidants, beta-carotene, and vitamin E, offering potential health benefits for the public.
“In terms of nutrition, red palm oil has a very high antioxidant content, so its utilization needs to be further optimized,” he stated.
He added that the product has the potential to support various health initiatives—ranging from enhancing cognitive function and helping to lower the risk of cardiovascular disease to aiding in stunting prevention by improving public nutritional quality.
Driven by high productivity, support for downstream processing, and food product innovation, the palm oil industry is expected to remain a key pillar in maintaining Indonesia’s food security while fulfilling future global demand for vegetable oils. (*)
Sawitku.id. Pakar IPB: Sawit Jadi Kunci Ketahanan Pangan. https://www.sawitku.id/nasional/81417395642/pakar-ipb-sawit-jadi-kunci-ketahanan-pangan. 20 Juli 2026
