Indonesia Secures Food Security with Palm Oil, CPO Production Hits 53 Million Tons
Economy
2026年7月18日
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VOI English

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Indonesia Secures Food Security with Palm Oil, CPO Production Hits 53 Million Tons

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Indonesia's palm oil industry is positioned as a crucial pillar for food security amidst rising global vegetable oil demand. With an annual production capacity of 53 million tons, it fully meets domestic needs and generates export surplus. Efforts are underway to enhance added value and leverage its health benefits.

The palm oil industry is considered one of the main pillars of national and global food security amid a surge in global vegetable oil demand expected by 2050. According to Puspo Edi Giriwono, Head of the SEAFAST Center of IPB University, Indonesia currently produces around 53 million tons of crude palm oil (CPO) annually, making it the world's largest producer. He stated that this production capacity is not only sufficient to meet all domestic vegetable oil needs but also creates a surplus for the export market. "Our palm oil is able to meet Indonesia's needs 100 percent, even surplus and can meet global vegetable oil needs," Puspo said through a written statement received by VOI, Saturday, July 18. Puspo estimates that the world population will reach 10-11 billion by 2050, with a vegetable oil demand of around 250 million tons per year. In a condition of increasingly limited land, increasing palm oil productivity is considered a more efficient solution than land expansion. Puspo also assessed that the industrialization of the palm oil industry in the food sector needs to be accelerated so that Indonesia is not only a supplier of raw materials but also a producer of high-value-added products. Currently, palm oil is used in various products such as cooking oil, margarine, chocolate, and processed foods. However, according to Puspo, the opportunities for the development of derivative products are still very large. "Everything you eat is palm oil. Because palm oil is so flexible and has a very affordable price," he said. The government, through the Plantation Fund Management Agency, also carries out the Food and Industrialization Program to increase the added value of palm oil products through research funding, infrastructure development, and industry partnerships. One of the products considered potential is red palm oil, which is rich in antioxidants, beta-carotene, and vitamin E. He added that red palm oil has the potential to support national health programs, including improving child nutrition and handling stunting. "We encourage red palm oil to be optimally optimized," Puspo emphasized.

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