The World’s Leading Palm Oil Producer

The world’s leading palm oil producer on earth is derived from Indonesia's rainforest.

The Palm trees planted about 25 years ago have an annual average production rate of 4 tones of oil per hectare. Indonesia is considering plans to increase production by introducing newer varieties which could double the production rate per hectare.

Borneo and Sumatra are the two islands that account for 96% of Indonesia's palm oil production. As of 2011, there were 7.8 million hectares of palm oil plantations.

According to World Bank reports, nearly 50% of CPO produced in the country is exported in an unprocessed form, while the remaining is processed into cooking oil, about half of which is exported, while the rest is consumed locally.

The crude palm oil production system is vital to the economy of Indonesia, and has many domestic and foreign uses. It provides a major export source of food and for industrial use. It is also used for domestic food, biodiesel, and biofuel. It is estimated that the population of Indonesia will grow to 285 million people in 2025, which will lead to an increased domestic demand for vegetable oil. In addition, other domestic industrial uses of palm oil are to support the pharmaceutical, cosmetic, and chemical industries.

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