Antara News·Indonesia·Wednesday, November 4, 2026 at 06:05 AM UTC

Indonesia seeks direct palm oil exports to boost returns

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Amandine N, Rahmad Nasution

Batam, Riau Islands (ANTARA) - Indonesia wants to export crude palm oil (CPO) directly to end buyers instead of routing shipments through neighboring countries, seeking higher returns, Food Coordinating Minister Zulkifli Hasan said.

Indonesia was not maximizing returns from strategic commodities, including palm oil, nickel and tin, because some exports passed through neighboring countries, he said in Batam, Riau Islands Province, on Wednesday.

"We want a developed, sovereign country. I sometimes get frustrated. Indonesia is the biggest producer of CPO, nickel and tin, yet its exports go through neighboring countries," he added.

He cited a price gap in palm oil, saying CPO was priced at Rp27,000 (US$1.49), while Indonesia sold it to neighboring countries for Rp15,000 (83 cents).

"We have been losing out for years. We can no longer afford to be complacent. We want to export directly," Zulkifli said.

The issue goes beyond trade, he said, reflecting Indonesia's ability to control distribution chains and capture more value from its natural resources.

He also cited other issues he said showed Indonesia was often disadvantaged, including forest and land fires, fuel queues in Bali and pressure on domestic financial markets.

"Whenever something happens, Indonesia is the one that loses," he said.

Zulkifli also referred to scrutiny of Indonesia's capital market by Morgan Stanley Capital International (MSCI).

He linked these pressures to the challenge of safeguarding economic stability and national sovereignty.

He stressed the importance of understanding Pancasila, Indonesia's state philosophy, and the 1945 Constitution, particularly Article 33, which mandates managing natural resources for public prosperity.

Beyond commodity exports, Zulkifli said food security remained challenged by reliance on imports of rice, wheat, sugar, soybeans and salt.

He called for higher productivity among farmers, livestock producers and fishermen through mechanization, technology adoption and better production management.

"A country cannot advance if its people remain dependent on aid and cash transfers. We must train them and provide opportunities to help them become productive," he said.

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