President Prabowo Subianto has unveiled a plan to expand Indonesia’s oil palm plantations to address the growing global demand for palm oil, a key commodity for many industries. As the demand for palm oil continues to increase annually, the president emphasized the importance of the commodity in a wide range of products, from food items like chocolate to non-food goods such as cosmetics. He noted that palm oil plays a strategic role in various countries' economies and industries. "When I travel abroad, I see that many countries are looking to Indonesia, especially those who need our palm oil," President Prabowo stated on December 30, 2024. His remarks reflect the global reliance on Indonesian palm oil and its significance in international trade.

To support the growing demand, President Prabowo has instructed governors across Indonesia to accelerate the expansion of oil palm plantations within their respective regions. The president pointed out that oil palm plantations are national assets and that expanding these plantations is critical for Indonesia's future. "Our oil palm plantations are national assets, and I believe we must expand them in the future," Prabowo said, signaling a clear directive for regional leaders to prioritize plantation development. This expansion will not only increase palm oil production but also create new opportunities for local economies.

In addition to promoting plantation growth, the president has called for enhanced security measures around existing oil palm plantations. He directed law enforcement agencies, including the Indonesian Military (TNI) and the National Police (Polri), to take action to secure these vital plantations. The importance of securing oil palm plantations cannot be overstated, as they face various challenges, including illegal encroachment, theft, and environmental concerns.

President Prabowo also addressed the environmental concerns often associated with palm oil cultivation, specifically deforestation. While some critics argue that palm oil plantations contribute to environmental damage, the president defended the industry by highlighting its positive aspects, such as its ability to absorb carbon dioxide (CO2). "They say it is threatening the environment, leading to deforestation. But oil palm is a tree, right?" he remarked, underscoring his belief in the environmental benefits of responsibly managed palm oil plantations.

The Ministry of Agriculture reported that the size of Indonesia’s oil palm plantation area reached 16.8 million hectares (Ha) in 2023. This represents a significant increase of 6 million Ha, or a 56.6% rise, from 2014. The plantation area is predominantly made up of privately owned estates, accounting for 50% of the total plantation area, or approximately 8.4 million Ha. Additionally, 37% of the plantations, roughly 6.3 million Ha, are owned by smallholders. The largest oil palm plantations are concentrated in several key regions, with Riau leading the way at 3.49 million Ha, representing 20.8% of the national total. Other provinces with significant oil palm plantation areas include Central Kalimantan (2.04 million Ha), North Sumatra (2.02 million Ha), and West Kalimantan (1.83 million Ha).

With this expansion plan, President Prabowo aims to solidify Indonesia’s position as the world’s largest producer of palm oil. This move is expected to not only meet the increasing global demand but also generate substantial economic benefits, create jobs, and strengthen Indonesia’s role in international trade. The government’s emphasis on expanding oil palm plantations, improving security, and promoting sustainability is crucial to the long-term success of the palm oil sector.