Indonesia Targets 1 Million Tons of Palm Oil Exports to Russia
Main Takeaways
|
JAKARTA, investortrust.id – Indonesia aims to increase its palm oil exports to Russia to one million tons, driven by growing demand from the food, pharmaceutical, and cosmetics industries.
Chairman of the Indonesian Palm Oil Association, Gabungan Pengusaha Kelapa Sawit Indonesia or GAPKI, Eddy Martono, stated that shipments to Russia reached 680,000 tons in 2024, up 13 percent from the previous year. Speaking at the Russia–Indonesia Business Forum in Jakarta on Monday, April 14, 2025, he expressed confidence that export volumes could hit one million tons by next year.
“Indonesian palm oil is favored in Russia, particularly for food and pharmaceutical production,” Eddy said, noting that most exports comprise refined palm oil—processed derivatives of crude palm oil (CPO) used across various industrial applications.
He emphasized that palm oil holds a critical advantage over other vegetable oils due to its chemical stability under high temperatures. This quality makes it an indispensable input in manufacturing, although Russian households still rely on sunflower oil for daily cooking.
Eddy voiced optimism that the bilateral business forum would help accelerate the export expansion. He added that GAPKI is confident the one-million-ton target could be achieved in 2025, given the untapped market potential.
In addition to increasing direct exports, Eddy suggested that Russia could serve as a distribution hub to neighboring countries with limited access to palm oil and port infrastructure, such as Uzbekistan and Tajikistan.
Presenting to Russian business leaders, Eddy underscored the strategic importance of Indonesia’s palm oil sector, which ranks as the country's second-largest foreign exchange contributor after coal. Beyond trade, the industry supports millions of jobs and acts as a vital pillar of the national economy.
Indonesia produced 39 million tons of palm oil in 2024, accounting for roughly 54 percent of the global vegetable oil supply, which stood at 92 million tons. The country is not only the largest producer but also the largest consumer of palm oil worldwide.
“Production has remained relatively stagnant over the past five years, while domestic consumption has continued to rise,” he said.
Eddy also highlighted GAPKI’s active role in supporting the government’s development agenda, particularly through promoting the rejuvenation of smallholder plantations. Many private palm oil companies have partnered with community growers to expand sustainable cultivation.
He further noted that during the COVID-19 pandemic, when many sectors were forced to lay off workers, the palm oil industry provided economic resilience by increasing employment instead.