Indonesia, as the world's largest palm oil producer, with a total production exceeding 56 million tons and exports reaching 26.33 million tons, has cemented palm oil as a strategic commodity supporting the national economy. In 2023, palm oil and its derivatives' export value reached USD28.45 billion, contributing to 11.6% of total non-oil and gas exports, and providing employment for up to 16.2 million direct and indirect workers, including smallholders. Indonesian palm oil exports have reached over 125 countries to meet food, energy, and various downstream industry needs.Minister of Economic Affairs Coordination, Airlangga Hartarto, highlighted the ongoing promotion of Biodiesel Mandate, currently at B35 and being tested for B40, with domestic biodiesel absorption reaching 12.2 million kiloliters in 2023, significantly impacting domestic CPO usage. Moreover, as a comprehensive roadmap for improving sustainable palm oil governance, the government has established Presidential Instruction No. 6 of 2019 concerning the National Action Plan for Sustainable Oil Palm Plantations (RAN KSB) 2019–2024.
The RAN KSB consists of 5 components, 28 programs, 92 activities, and 118 outputs, focusing on strengthening data, coordination, and infrastructure, enhancing smallholder capacities, environmental management, plantation governance, and accelerating the implementation of Indonesian Sustainable Palm Oil (ISPO) certification and improving market access. In addition to ISPO certification, another key policy in RAN KSB is the Smallholder Oil Palm Replanting Program (PSR). The government has expedited the PSR program by streamlining its application process. As of March 24, 2024, the PSR program has distributed funds amounting to IDR 9.25 trillion for a total land area of 331,007 hectares. Menko Airlangga also urged support and cooperation from local governments regarding RAN KSB implementation by preparing necessary steps for expediting the formulation and implementation of Regional Action Plans for Sustainable Oil Palm Plantations (RAD KSB) in their respective areas.
