What is Indonesia's Palm Oil Production?

Palm oil production in 2017 is projected to grow by 6.4 percent to 35.36 million tons compared to the previous year. This figure comprises production from Smallholder Estates (Perkebunan Rakyat) weighing 11.31 million tons, State-Owned Large Estates (Perkebunan Besar Negara) 2.5 million tons, and Private Large Estates (Perkebunan Besar Swasta) 21.55 million tons.

Based on data from the Directorate General of Estate Crops, Ministry of Agriculture, the area of palm oil land this year is targeted to increase by 3.3 percent to 12.3 million hectares (Ha) from 11.91 million Ha in the previous year. This land comprises 4.76 million Ha of Smallholder Estates, 753 thousand Ha of State-Owned Large Estates, and 6.8 million Ha of Private Large Estates.

Palm oil productivity for Smallholder Estates reached 3,147 kg/Ha, for State-Owned Large Estates 3,802 kg/Ha, and for Private Large Estates 3,948 kg/Ha. Meanwhile, palm oil exports in 2015 increased by 15.6 percent to 26.47 million tons from the previous year. However, the export value decreased by 11.91 percent to US$ 15.38 billion from the previous year due to falling commodity prices, including palm oil.