“Digital transformation is no longer an option, but a necessity,” said Ardi Praptono, Director of Oil Palm and Various Palm Plantations at the Ministry of Agriculture, on Wednesday.
He noted that digitalization offers concrete solutions to increase productivity and support the country’s target of producing 100 million tons of palm oil by 2045.
“Digitalization also creates opportunities for farmers, making the industry more inclusive and sustainable,” he added.
Palm oil remains one of Indonesia’s top agricultural commodities, significantly contributing to national foreign exchange. In 2023, palm oil exports reached 38.23 million tons, generating US$25.61 billion in revenue.
Data from Statistics Indonesia shows the national economy grew 4.95 percent in the third quarter of 2024, while the agriculture and plantation sectors expanded 1.69 percent, driven in part by palm oil.
According to the Ministry of Trade, Indonesia’s non-oil and gas exports totaled US$181.14 billion as of September 2024. Exports of fats and vegetable oils, including palm oil, contributed US$14.43 billion to the national economy.
“With such significant potential, the palm oil industry plays a vital role in the Indonesian economy,” said Praptono.
However, he acknowledged several challenges faced by the industry, including climate uncertainty, limited technology adoption, and low commodity prices.
“One of the major issues is that Indonesia, despite being the world’s leading palm oil producer, mainly exports raw materials, which have lower selling value,” he said.
“As a result, Indonesia still lacks influence in determining global palm oil prices,” he added.
To address these challenges, Praptono emphasized the need for collaboration among stakeholders and adaptive use of technology.
“Digitalization for a sustainable palm oil industry is relevant and forward-looking in addressing the industry's future challenges,” he added.
Related news: Ombudsman urges creation of National Palm Oil Agency
Related news: Palm oil downstreaming to meet people's nutritional needs: ministry
Translator: Arnidhya Nur Zhafira, Yashinta Difa
Editor: Anton Santoso
Copyright © ANTARA 2025
