NUSA DUA, Bali — Indonesian palm oil industry is facing various challenges, ranging from productivity and green regulations to the uncertainty of global economy. Amid such difficult condition, business players and the government have prepared a number of strategies to continually push up its growth.
The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said that despite the challenges, the palm oil industry players are looking to 2026 with high optimism, saying that there are still opportunities that could be tapped to push up the industry’s growth. He said the industrial players base their optimism on the strong performance of Indonesian palm oil industries so far this year.
“Our industrial foundation is still strong. As of September 2025 our national palm oil production reached more than 43 million tons, an increase of 11% compared to that of the same period last year,” Eddy Martono said during the opening ceremony of Indonesian Palm Oil Conference (IPOC) 2025 in Nusa Dua, Bali, on Thursday (13/11/2025). The 21st IPOC is themed ”Navigating Complexity, Driving Growth: Governance, Biofuel Policy, and Global Trade”.
He said palm oil exports had also increased significantly. Total exports, including CPO and derivative products–such as oleochemical and biodiesel, had reached more than 25 million tons, an increase of 13.4% compared to that of the previous year. “The exports had contributed foreign exchange at US$27.3 billion or an increase of 40% compared to that in 2024,” he said.
Meanwhile, domestic consumption was still solid. Based on data from GAPKI, domestic consumption reached 18.5 million tons, which was higher than 17.6 million tons last year.
Eddy said that with the right policy, GAPKI believes Indonesian palm oil industries will continue to function as the major contributor of trade surplus for Indonesia. “But the palm oil industry players should continually watch out the global dynamics, especially on the implementation of European Union Deforestation-free Regulation (EUDR). The EUDR is not just a matter of legality, but it poses a challenge to our own system,” he said.
According to him, in facing the unprecedented challenges, the development of Indonesian palm oil industries in the future will depend on the mastery of three important aspects, namely the dynamic global trade, smart governance, and strong biofuel policy.
“Our biofuel policy on B35 and B40 is not just regulation. It is a masterpiece of smart governance. The policy has created a strong foundation for domestic demand, emission reduction, and strong support for smallholders,” he said.
With stronger governance, consistent biofuel policy, and government support, GAPKI is optimistic that the challenges in the global market can be changed into opportunities for growth in 2026.
“The palm oil is not merely a commodity, as it also functions as a foundation of trade surplus for Indonesia, and the main pillar for our exports. Looking forward to 2026, our optimism is not blind, but determined to push our industry,” concluded Eddy.
New Participant Record
The Indonesian Palm Oil Conference (IPOC) has again confirmed its position as a strategic global forum for discussions about palm oil industry.
Serving as a reference point for policy direction and overview of the palm oil industry’s prospects, both nationally and globally, the annual conference this year (2025) was attended by internationally renowned speakers, policymakers, and key figures in the sector, making it even more relevant for palm oil industry players.
“We see this year a very outstanding enthusiasm for this conference,” Mona Surya, Chairperson of the 21st IPOC Committee, said on Thursday (13/11/2025).
According to Mona, there is a significant increase in sponsor participation. A total of 38 major companies support the conference, while 113 exhibition booths were fully occupied, showcasing the latest innovations in the palm oil industry.
She said that the IPOC 2025 achieved a new record number of participants, with 1,545 participants from 28 countries, which shows the strong appeal and vitality of the Indonesian palm oil sector globally.
In addition to being an inspiring platform for industrial development, Mona emphasized that IPOC also serves as a platform for strengthening business networks. As in previous years, this conference also includes a variety of networking activities aimed at fostering collaboration between business actors. (*)
