Production volume of palm oil in Indonesia 2012-2019

Indonesia is the world’s top producer and exporter of palm oil. In 2019, its production of this commodity amounted to around 45.8 million metric tons. The production volume in 2020 was expected to remain flat, due to low fertilizer usage and dry weather.

Oil-palm estates

Palm oil is one of Indonesia’s largest agricultural export commodities, and in 2018, just under 13 million hectares of land was used for palm oil production. Indonesian palm oil estates fall under three categories: large private plantations, smallholders, and state-owned. Most of the plantations were located in Riau, Kalimantan, and Sumatera. Unsurprisingly, these provinces account for most of the production of palm oil as well.

Effects of palm oil production

In recent years, the production of palm oil had come under increased global scrutiny and criticism, due to its detrimental effects on the environment. In Indonesia, many plantations practice slash-and-burn agriculture to quickly clear the land for new plantings. This has resulted in annual air pollution problems that spread to neighboring Singapore and Malaysia. Furthermore, Indonesia has lost much of its rainforest cover to oil palm monoculture, especially in Kalimantan and Sumatera.

Some measures already exist to ensure sustainable and environmentally friendly production practices. In 2008, the Roundtable on Sustainable Palm Oil (RSPO) introduced certain criteria that producers must comply with to produce Certified Sustainable Palm Oil (CSPO). However, as at June 2019, Indonesia had produced just under eight million metric tons of sustainable palm oil.

Production volume of palm oil in Indonesia from 2012 to 2019

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Source

Release date

April 2020

Region

Indonesia

Survey time period

2012 to 2019

Supplementary notes

Figures have been rounded.

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Statistics on "Palm oil industry in Indonesia"

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