SunSirs: Indonesia's Palm Oil Exports Rise 5.49% Year-on-Year (Jan–July); Agricultural Exports Show Strong Performance

Jakarta (SugarPos.co) – From January to July 2026, Indonesia's agricultural exports demonstrated a positive trend, with palm oil serving as a key driver; the export value of crude palm oil (CPO) and its derivatives increased by 5.49% year-on-year.

During the same period, Indonesia's cumulative non-oil and gas exports reached US$160.01 billion, a year-on-year rise of 5.21%, while total exports across all commodities amounted to US$167.03 billion, up 4.43% year-on-year.

Ateng Hartono, Deputy for Distribution and Services Statistics at Statistics Indonesia (BPS), stated that strengthening global commodity prices boosted the performance of the agricultural sector, with palm oil standing out as a primary example of rising agricultural prices. At an official statistics release briefing, he noted that global commodity prices generally trended upward in July 2026 compared to the previous year, with increases across the agriculture, energy, precious metals, and mineral sectors; the rise in agricultural prices was primarily driven by palm oil.

The animal and vegetable fats and oils category (HS Code 15)—which includes palm oil—is a vital pillar of non-oil and gas exports. Leveraging palm oil as a raw material, Indonesia's processing and manufacturing sector grew by 7.16% year-on-year during the January–July 2026 period. This indicates that the contribution of Indonesia's agricultural foreign trade is no longer limited to primary raw materials; deeply processed agricultural products generate higher economic value, thereby reinforcing Indonesia's competitiveness in the global market.

China is a major export market for Indonesia's non-oil and gas products. From January to July 2026, the value of Indonesia's non-oil and gas exports to China reached US$40.62 billion, a significant year-on-year increase of 18.01%, with animal and vegetable fats and oils (palm oil-related products) constituting a crucial component of this bilateral trade.

Indonesian Minister of Agriculture Andi Amran Sulaiman remarked that these figures confirm the strength of Indonesian agricultural products in global trade, noting that Indonesia is a leading global palm oil producer with an exceptional industrial foundation. He emphasized that the country must not limit itself to exporting raw materials; instead, it must vigorously promote downstream deep processing to boost product value-added.

"Indonesia is one of the world's largest palm oil producers—a key advantage for us. We cannot simply export raw materials; we must drive downstream deep processing to further enhance the value-added of our products," the Minister of Agriculture stated.

Amran pointed out that export growth must balance improvements in upstream production efficiency with the development of downstream processing industries. Export growth should not merely boost national trade figures; it must ensure that planters and farmers tangibly share in the industry's dividends. "The most important thing is to pass the value-added back to farmers and palm oil growers. We need to improve production efficiency and drive downstream processing to strengthen the entire upstream-downstream value chain."

The government is currently advancing the replanting of palm oil crops, promoting high-quality seedlings, and increasing yields, while simultaneously vigorously developing the agricultural processing industry. The goal is for Indonesia to evolve from a major producer into a powerhouse for the export of high-value-added agricultural products.

The 5.49% increase in exports of crude palm oil and its derivatives clearly demonstrates the strategic value of agricultural products to Indonesia's foreign trade. Looking ahead, Indonesia will continue to boost production capacity and deepen downstream processing, aiming to expand export volumes while improving the economic well-being of farmers.

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