The Indonesian Palm Oil Association (IPOA), or locally known as Gabungan Pengusaha Kelapa Sawit Indonesia (GAPKI), was established on 27 February 1981. Following a growing awareness among the palm oil producers, it was realised that there is a need to be united under one organization, as the number of new palm oil producing companies was increasing. It started with just 23 members and now IPOA has a total of membership of …. companies, consisting of state-owned plantation companies (PTPN), privately-owned foreign and local companies as well as smallholders under cooperatives.
To create a sustainable national palm oil industry as the source for the well being of the public .
- Synergizing all national palm oil stakeholders
- Acting as partner of the central government and regional governments to formulate conducive policy for the sustainability of palm oil industry.
- Encouraging members to implement good governance and sustainability principles in the palm oil industry.
- Improving competitiveness of Indonesia’s palm oil producers to enable them to compete at international markets.
- Manage and develop the capabilities, activities, and all necessities needed by the Indonesian palm oil producers, and synergize them in a balanced manner under an interrelated framework based on their respective potential.
- Create a conducive condition for the Indonesian palm oil industries.
- Facilitate the palm oil industries to increase their capabilities to realize sustainable palm oil industries.
- Facilitate and advocate palm oil industries in dealing with problems they face.
- Develop a synergy with the central government and regional governments in designing policies on palm oil industry.
Most of Indonesian people, namely:
58% (in 2000) & 50% (in 2012)
live in villages and are in need of having their welfare lifted. Most of the workforce live and work in villages/agriculture sector.
Palm oil is Indonesia’s main export commodity. The exports of palm oil, with a total export value of US$23 billion (2017), exceeded that of Indonesia’s oil and gas sector.
and far exceeded the export values of five other main export commodities of plantations, namely rubber, cocoa, coffee, sugar and tea.
The export value of Indonesia’s palm oil products in 2017 reached US$22.97 billion, an increase of 26 percent compared with the export value of US$18.1 billion in 2016 which accounted for 12.3 percent of the total exports of Indonesia in 2016.
Currently, the main export destinations of Indonesia’s palm oil exports are India (34%), European Union (18%), China (14%), Pakistan (10%), and Bangladesh (6%).
Palm oil contributes Rp300 trillion of foreign exchange to the country.
The Indonesian palm oil industry’s foreign exchange contribution reached a new record where in 2017, it contributed US$23 billion or around Rp300 trillion in foreign exchange. The new record further strengthened its position as the biggest contributor of foreign exchange to the Indonesian economy.
A new paradigm for the palm oil industry as an important commodity for the welfare of smallholders and the realization of Sustainable Development Goals (SDGs), especially for consuming countries.
It is hoped that the Indonesian government will continually support and facilitate development of the palm oil industry as a national strategic commodity that continues to be competitive and sustainable.
2018 – 2023
Continually increasing competitiveness, creating conducive investment climate through policies and regulations. Supporting the Indonesian government to strengthen the Indonesian Sustainable Palm Oil (ISPO) so that Indonesia’s palm oil is accepted and respected globally.