Current status of Indonesia’s palm oil products and their competitiveness in the global market

Abstract

Abstract Oil palm is recognised as contributing significantly to crucial economic growth in Indonesia. Still, it is often considered a severe threat to tropical forest ecosystems due to the large amount of forest conversion for oil palm cultivation. Also, oil palm business and marketing processes have many opportunities and challenges. In response, this research examines and reveals in depth the current state of Indonesia’s palm oil business and marketing in the global market. By interviewing, reviewing the literature, and conducting a stakeholder analysis, we found that Indonesia has high competition for global palm oil, with processed products such as Refined Palm Oil and Oleochemical Mix dominating the world market and high export value growth. However, the export value for crude oil, such as palm oil and palm kernel oil, in 2020 - 2021 is low due to government policies for downstream and industrialisation programs. The government, as policymakers, the oil palm funding agency (BPDPKS), and the oil palm companies are key players with high interest and influence in the sustainable development of the oil palm business. European Union and Press can be context setters with low interest but high influence on business and marketing processes in Indonesia.