Indonesia attracted IDR 62.8 trillion, equivalent to USD 3.7 billion, in investments in its palm oil sector throughout 2025, reinforcing the country’s strategy to move up the global value chain. The investments are focused on downstream development, enabling palm oil to be processed into higher-value products domestically. According to Investment Minister Rosan Roeslani, this approach is designed to maximize the economic value of Indonesia’s natural resources, generate employment, and create broader multiplier effects across the economy while enhancing workforce capabilities through exposure to advanced manufacturing technologies.
The downstream push extends beyond palm oil to other sectors such as forestry, mining, fisheries, and oil and gas, reflecting Indonesia’s long-term industrial transformation agenda. While palm oil remains a strategic priority, mining—particularly nickel processing—continues to attract the largest share of downstream investment. As the world’s largest palm oil producer, Indonesia is also leveraging this commodity to support energy security through its biofuel program, which currently mandates a 40% palm oil blend. The government continues to review plans to raise the blend to 50%, signaling sustained commitment to value addition, industrial resilience, and reduced reliance on fuel imports.
