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<\/a><\/p>\nThe economic coordinating ministry\u2019s Deputy II in charge of foods and agribusiness, Musdhalifah Machmud said that the government is seeking to transform Indonesia, the world\u2019s largest producer of palm oil, from what she calls \u201cRaja Hulu Sawit\u201d (King of Upstream Palm Oil) to \u201cRaja Hilir Sawit\u201d (King of Downstream Palm Oil) in 2045.<\/p>\n
She noted that since the last few years, the government has issued a number of policies to accelerate the development of downstream palm oil industries in the country. \u201cThe policies include tax incentives, palm oil export tariff and duty, development of special zones for downstream palm oil industries that are integrated with seaport and supporting facilities, and the biodiesel mandatory policy,\u201d she said in a press release issued on Monday, 28 June 2021.<\/p>\n
According to her, every year the downstream program has managed to increase the contribution of palm oil to the national economy. So far, Indonesia\u2019s exports of downstream palm oil products are higher than its exports of upstream palm oil products.<\/p>\n
\u201cIn 2006, our exports of upstream palm oil products accounted for around 60 \u2013 70 percent. But now our exports of downstream palm oil products have reached 60 \u2013 70\u00a0percent and exports of upstream palm oil products are only around 30 \u2013 40 percent,\u201d she said.<\/p>\n
She said that the downstreaming process of Indonesian palm oil industries can be categorized into three areas of development, namely oleo-foods complex, oleo-chemicals complex, and \u00a0biofuel complex. \u201cIn the oleo-foods complex, it will be the process of further downstreaming the refinery products into intermediate oleo-food products and to finished food products. Now, our downstream oleo-food products include cooking oil, margarine, vitamin A, Vitamin E, shortening, ice cream, creamer, cocoa butter\/specialty-fat and others.\u201d<\/p>\n
\u201cIn the oleo-chemical complex, it will be further development of refinery products to produce intermediate oleo-chemical products and various finished products, such as detergents, soap, shampoo, bio-lubricants and biomaterial (such as bio-plastics).\u201d<\/p>\n
\u201cIn the biofuel complex, it will be further development of refinery products into biofuel and other finished products, such as biogas, biopremium, and bioavtur,\u201d she said.<\/p>\n
The three areas of downstream palm oil development stand as an important part of Indonesian industrialization strategy, which is a combination of export promotion strategy and import substitution. \u201cThat way, our downstream palm oil program will continually create a multiplier effect to our national economy and society,\u201d she asserted.<\/p>\n
She added that the downstream program had also increased a variety of downstream products, from just 70 kinds of products in 2011 to 126 kinds of products in 2017, and to 170 kinds of products in 2020, which are dominated by foods and oleo-chemical products.<\/p>\n
Palm oil duty<\/strong><\/p>\nThe Indonesian Vegetable Oil Industries Association (GIMNI) Chairman Bernard Riedo said the government policy of palm oil export tariff and duty has spurred the development of Indonesia\u2019s downstream palm oil industries. \u201cInvestments for development of the downstream palm oil industries in Indonesia have been steadily increasing. The downstream palm oil development will create much higher economic benefits, which include new job opportunities, higher tax income and foreign exchange income for the state,\u201d he said.<\/p>\n
\u201cThe palm oil export duty scheme, which charges higher duty for the upstream products than the downstream products, has significantly increased the competitiveness of Indonesia\u2019s downstream palm oil products at the global market and maintains the price stability of palm oil for foods at domestic market,\u201d he said.<\/p>\n
Based on data from GIMNI, during the period of January – April 2021, Indonesia\u2019s palm oil exports consisted of downstream products (high value added) at\u00a0 80% – 90%, while its upstream products (low value added), crude palm oil (CPO) and crude palm kernel oil (CPKO), were around 10%-20%. In January 2021, the export of CPO and derivatives reached 2.861 million tons (24% Crude Oils\/CO and Palm Processed Oils\/PPO at 76%).<\/p>\n
In February 2021, \u00a0the palm oil export volume amounted to 1.994 million tons (crude oils 20% and PPO at 80%). In March 2021, the palm oil export volume rose to 2.63 million tons (crude oils 12% and PPO 88%). In April 2021, the export volume increased again to 3.078 million tons (crude oils 10.6% and PPO 89.4 %). (*)<\/p>\n
Source: Liputan6.com\/investor daily<\/p>\n","protected":false},"excerpt":{"rendered":"
JAKARTA \u2013 The Indonesian government has been driving up the development of downstream palm oil industries through its national strategic program of downstream palm oil since 2011. Currently, the palm oil is one of Indonesia\u2019s top commodities and plays a very important role in the national economy.<\/p>\n","protected":false},"author":1,"featured_media":20410,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[3708,3709],"tags":[],"class_list":["post-20409","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-publication","category-recent-news"],"yoast_head":"\n
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More than 80% of Indonesia's palm oil exports now consist of value-added downstream products rather than crude palm oil, reflecting the growing impact of the government's industrialization strategy, an official said. Zaid Burhan Ibrahim, finance director of the Plantation Fund Management Board (BPDP), said palm oil remains\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/08\/palmoil_tanker_loading__gapki.id__.jpg?fit=790%2C448&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/08\/palmoil_tanker_loading__gapki.id__.jpg?fit=790%2C448&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/08\/palmoil_tanker_loading__gapki.id__.jpg?fit=790%2C448&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/08\/palmoil_tanker_loading__gapki.id__.jpg?fit=790%2C448&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":28861,"url":"https:\/\/gapki.id\/en\/news\/2024\/11\/05\/gapki-launches-child-friendly-movement-in-palm-industries\/","url_meta":{"origin":20409,"position":1},"title":"GAPKI Launches Child-Friendly Movement In Palm Industries","author":"admin","date":"November 5, 2024","format":false,"excerpt":"JAKARTA \u2013 Responding to the accusation that palm oil industries employ underage children, the Indonesian Palm Oil Association (GAPKI) has been initiating since 2021 a national movement called \u201cSawit Indonesia Ramah Anak\u201d (SIRA) or Indonesia\u2019s Child-friendly movement in palm oil industries. Through this initiative, GAPKI is committed to ensuring that\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/11\/paacla_25_okt_sawit_ramah_anak.jpg?fit=1063%2C658&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/11\/paacla_25_okt_sawit_ramah_anak.jpg?fit=1063%2C658&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/11\/paacla_25_okt_sawit_ramah_anak.jpg?fit=1063%2C658&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/11\/paacla_25_okt_sawit_ramah_anak.jpg?fit=1063%2C658&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/11\/paacla_25_okt_sawit_ramah_anak.jpg?fit=1063%2C658&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":28859,"url":"https:\/\/gapki.id\/en\/news\/2024\/11\/04\/govt-to-set-up-new-palm-oil-task-force\/","url_meta":{"origin":20409,"position":2},"title":"Govt To Set Up New Palm Oil Task Force","author":"admin","date":"November 4, 2024","format":false,"excerpt":"JAKARTA \u2013 Forestry Minister (Menhut) Raja Juli Antoni said that the government under President Prabowo Subianto will revive the palm oil task force (Satgas Sawit) which has completed its term of service under the administration of President Joko Widodo (Jokowi). \u201cInformally, I\u2019ve talked with Mensesneg (minister of state secretary) about\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/08\/palmoil_forest_hpnc.co_.id_.jpg?fit=798%2C486&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/08\/palmoil_forest_hpnc.co_.id_.jpg?fit=798%2C486&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/08\/palmoil_forest_hpnc.co_.id_.jpg?fit=798%2C486&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/08\/palmoil_forest_hpnc.co_.id_.jpg?fit=798%2C486&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":30775,"url":"https:\/\/gapki.id\/en\/news\/2025\/12\/01\/ri-preparing-palm-extensification-to-expedite-production-rise\/","url_meta":{"origin":20409,"position":3},"title":"RI Preparing Palm Extensification To Expedite Production Rise","author":"admin","date":"December 1, 2025","format":false,"excerpt":"JAKARTA \u2013 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\u2026","rel":"","context":"In "Info & Activity"","block_context":{"text":"Info & Activity","link":"https:\/\/gapki.id\/en\/news\/category\/info-activity\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/12\/ilustrasi_gapki.id_kebun_sawit_.jpg?fit=1012%2C432&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/12\/ilustrasi_gapki.id_kebun_sawit_.jpg?fit=1012%2C432&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/12\/ilustrasi_gapki.id_kebun_sawit_.jpg?fit=1012%2C432&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/12\/ilustrasi_gapki.id_kebun_sawit_.jpg?fit=1012%2C432&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":31052,"url":"https:\/\/gapki.id\/en\/news\/2026\/02\/11\/gapki-reminds-palm-oil-availability-before-implementing-b50\/","url_meta":{"origin":20409,"position":4},"title":"GAPKI Reminds Palm Oil Availability Before Implementing B50","author":"admin","date":"February 11, 2026","format":false,"excerpt":"DEPOK \u2013 A number of palm oil stakeholders emphasized the importance of ensuring the productivity of oil palm plantations in the upstream sector and sufficient availability of palm oil supply as raw material in downstream sector before implementing the national mandatory program of biodiesel 50 percent (B50). The issue of\u2026","rel":"","context":"In "Info & Activity"","block_context":{"text":"Info & Activity","link":"https:\/\/gapki.id\/en\/news\/category\/info-activity\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/02\/palmoil_bunga_matahari_oilpalm_palmoil_gapki.id_.jpg?fit=1016%2C610&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/02\/palmoil_bunga_matahari_oilpalm_palmoil_gapki.id_.jpg?fit=1016%2C610&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/02\/palmoil_bunga_matahari_oilpalm_palmoil_gapki.id_.jpg?fit=1016%2C610&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/02\/palmoil_bunga_matahari_oilpalm_palmoil_gapki.id_.jpg?fit=1016%2C610&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":28040,"url":"https:\/\/gapki.id\/en\/news\/2024\/06\/22\/govt-prepares-palm-oil-roadmap-for-golden-indonesia-2045\/","url_meta":{"origin":20409,"position":5},"title":"Govt Prepares Palm Oil Roadmap For Golden Indonesia 2045","author":"admin","date":"June 22, 2024","format":false,"excerpt":"JAKARTA \u2013 The industry ministry is designing a palm oil roadmap toward \u201cIndonesia Emas\u201d (Golden Indonesia) 2045, which will become a guideline for the formulation of policies to develop Indonesia\u2019s strategic industry of palm oil comprehensively. \u201cThe palm oil roadmap is based on industrial added value, sustainability and traceability with\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/06\/tanam_sawit_kecil_SAWITKU_.jpg?fit=856%2C545&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/06\/tanam_sawit_kecil_SAWITKU_.jpg?fit=856%2C545&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/06\/tanam_sawit_kecil_SAWITKU_.jpg?fit=856%2C545&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/06\/tanam_sawit_kecil_SAWITKU_.jpg?fit=856%2C545&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/07\/palmoil_sawit_kompasiana.jpg?fit=1096%2C621&ssl=1","_links":{"self":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/20409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/comments?post=20409"}],"version-history":[{"count":0,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/20409\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media\/20410"}],"wp:attachment":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media?parent=20409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/categories?post=20409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/tags?post=20409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}