Indonesia continues to see increased foreign exchange earnings from palm oil exports, with a significant shift from crude palm oil (CPO) to processed products. The latest data from the Indonesian Palm Oil Association (GAPKI) shows that the share of processed palm oil exports is now growing annually, strengthening the dominance of downstream processing in the industry. This trend is reflected globally: the export share of products such as processed vegetable fats and oils rose from 0.88% in 2003 to 4.62% in 2023, according to international industry data projections.
The shift to processed products not only strengthens added value but also significantly contributes to the non-oil and gas trade surplus. The downstreaming policy has proven effective: analysis shows that if processed products increase by 15%, foreign exchange earnings could increase by up to USD 7 billion annually. This contribution is even more significant considering that the palm oil sector contributes more than 12% of Indonesia's total export revenues, while also playing a vital role in the trade balance and national economic growth.
