Producers in Bali debate the future of palm oil

Indonesia is the world's largest producer of this raw material and the crossroads of discussions on its environmental sustainability. Over the last year, prices have fallen by more than 17%, but operators in the sector are optimistic about the biofuel market. Forty-one per cent of Indonesian plantations are owned by small farmers.

Bali (AsiaNews) - Market prospects for a sector vital to Indonesia's economy are the focus of the 2025 edition of IPOC, the national conference of palm oil producers taking place in Bali until 14 November.

The meeting, entitled ‘Navigating complexity, driving growth: governance, biofuel policy and global trade’, brings together 1,500 participants from 26 countries, including policy makers, investors and industry leaders from across the palm oil supply chain.

The event comes at a delicate time: the price of crude palm oil (CPO) has fallen to US5.9 per tonne, down 17.12% year-on-year.

However, analysts in Bali are optimistic, judging these losses to be limited and betting on the intention expressed by Indonesia, the world's largest palm oil producer, to increase the mandate on biodiesel from 40% to 50% in the second half of 2026. This policy could reduce global supply and support prices in key markets such as India and China.

In addition to IPOC, Bali is also hosting the International Conference on Palm Oil and the Environment (ICOPE), which focuses on strategies to increase sustainability and environmental balance in this sector, which is often criticised for its impact.

Indonesia is thus increasingly emerging as the global hub for discussions on palm oil, a commodity that contributes more than US billion to the country's exports each year, surpassing those of the oil and gas sector.

The total area of oil palm plantations in Indonesia has reached 16.8 million hectares, with an annual oil production of around 50 million tonnes. These plantations are spread across 26 provinces and more than 200 districts and municipalities throughout the country.

All provinces on the islands of Sumatra and Kalimantan, as well as several provinces in Java, Sulawesi, Maluku and Papua, contribute significantly to this strategic industry for Indonesia.

Approximately 41% of the country's oil palm plantations are owned by smallholders, generating over 5.5 million direct jobs and 12 million indirect jobs nationwide.

• Indonesia
• Bali
• palm oil
• environment
• development
• economy
• biofuels