Strategy for Increasing Exports of Indonesian Palm Oil

Abstract Palm oil and its derivatives contribute to 13% of Indonesia’s total exports. Indonesia has a significant opportunity to become a major player in the global palm oil trade but faces threats in expanding market access and even maintaining existing markets. This research aims to analyse the strengths, weaknesses, opportunities, and threats in the plantation sector, especially palm oil, in Indonesia, using competitiveness analysis and Export Product Dynamic to formulate strategies for enhancing the export of palm products and derivatives. From this analysis, it is concluded that Indonesia has strength in its geographic conditions, but needs to strengthen human resources, especially in the agricultural sector, and add value to export commodities beyond raw materials. With the growth of the international market and the increase in the number of free trade agreements held by Indonesia, the potential for developing market access for palm and its derivatives is likely to expand. However, Indonesia also faces non-tariff barriers and environmental unfriendliness stigma, resulting in rejection or obstacles for Indonesian products to enter export destination countries. Strategies to be explored further include expanding into emerging markets while maintaining traditional markets, optimizing research and development for upstream efficiency and downstream derivative product diversification, improving sustainable palm oil industry governance, and enhancing domestic policies to support the palm oil industry.