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Tuesday, 16 December 2025
International Trade

Indonesia Encourages Global Competitiveness of Indonesia’s Palm Oil Industry

Enviro News Asia, Jakarta – The government remains committed to optimizing Indonesia’s commodity potential to drive national economic growth and improve public welfare. One such commodity is palm oil, a key export product that significantly contributes to Indonesia’s economy and employment.

In relation to the development of a national palm oil information and tracing system, the Indonesian Sustainable Palm Oil (ISPO) Team presented its progress report to Coordinating Minister for Economic Affairs Airlangga Hartarto on Thursday (May 22).

The meeting was part of the government’s ongoing commitment to strengthening the governance of a sustainable, transparent, and globally competitive national palm oil industry.

“The government continues to push for the enhancement of technology-based information systems to meet the challenges of transparency and sustainability. This information and tracing system will add value to Indonesian palm oil commodities in global markets,” said Coordinating Minister Airlangga, as quoted in his official statement.

On this occasion, Minister Airlangga also praised the progressive efforts made by the ISPO Team in promoting reform in national palm oil governance.

He provided several strategic inputs, particularly emphasizing the importance of a system design that is simple and easy to operate for all stakeholders.

“The tracing system must be designed to be simple and user-friendly so that it is accessible to all interested parties. It should be straightforward while still capable of facilitating access to global markets,” Minister Airlangga stressed.

The integration of the palm oil information and tracing system will include data on certification, plantation locations, and environmental sustainability aspects.

The system also incorporates tracing technology to ensure supply chain transparency from upstream to downstream, while supporting compliance with both domestic and international sustainability standards.

Furthermore, Minister Airlangga emphasized that the development of the information system requires strong synergy among Ministries/Agencies, business associations, academics, and independent monitors.

The information and tracing system must also align with national strategic policies, including the roadmap for a sustainable palm oil industry.

“Palm oil is one of the backbones of our national economy. With a reliable tracing system, we can demonstrate that Indonesian palm oil is managed responsibly and in accordance with sustainability principles,” concluded Minister Airlangga. *