TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Riding the wave: Momentum in Indonesia’s plantation sectors

Indonesia’s CPO production is expected to improve, stabilizing export volumes, although they are likely to remain below historic levels of 26 million to 28 million tonnes.

Muhammad Osribillal (Bank Mandiri)
Premium
Wed, January 15, 2025

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Riding the wave: Momentum in Indonesia’s plantation sectors A worker harvests oil palm fruit in Pucok Lueng, West Aceh regency, Aceh, on Feb. 4, 2023. In 2024, plantation commodities accounted for approximately 10.2 percent of Indonesia’s total export value, with crude palm oil (CPO) dominating the sector. (Antara/Syifa Yulinnas)

I

ndonesia’s plantation sector has long been a cornerstone of its economy, contributing significantly to the nation’s export performance. In 2024, plantation commodities accounted for approximately 10.2 percent of Indonesia’s total export value, with crude palm oil (CPO) dominating the sector. Historically, palm oil has been the driving force behind Indonesia’s export success, but 2024 marked a challenging year for the commodity.

According to Statistics Indonesia, the export value of CPO (categorized under HS code 1511) experienced a sharp decline of 14.6 percent year-on-year (yoy), dropping from US$21.23 billion in November 2023 to $18.1 billion in November 2024. This decline was attributed to weaker global demand and competition from alternative oils. Despite this significant drop in CPO, the combined export value of all major plantation commodities saw only a moderate decline, showcasing the resilience of other commodities.

While CPO struggled, other plantation commodities such as coffee, cocoa, coconut and rubber demonstrated remarkable performances. Exports of natural rubber (HS 4001) grew by 14.7 percent, reaching $2.60 billion in November 2024, mostly driven by a surge in price and at the same time stable global demand in manufacturing and automotive industries. Coffee (HS 0901) exports surged by an impressive 68.9 percent, totaling $1.46 billion, fueled by rising global demand and better pricing conditions.

The standout performer was cocoa (HS 18), which more than doubled its export value, growing 110.8 percent year-on-year (yoy) to $2.31 billion. This surge was mainly supported by a significant increase in cocoa prices amid robust international demand for chocolate. Additionally, coconut (HS 0801) exports experienced significant growth, increasing by 74.2 percent to $519 million, reflecting rising interest in coconut-based products such as oil, water and other derivatives.

The plantation sector’s performance in 2024 highlights the mixed fortunes of Indonesia’s agricultural exports. Significant price increases for plantation commodities placed the sector under the global spotlight. Based on Bloomberg data, CPO prices rose from $837.9 per tonne in 2023 to $923.8 per tonne in 2024, with early 2025 prices reaching $1,045 per tonne. This price growth was driven by strong global demand, a significant drop in CPO inventory, especially in Malaysia, and an increase in demand for CPO in Indonesia's domestic market caused by the biodiesel program, which in 2025 will officially transition to B40 biodiesel mix.

Similarly, Arabica coffee prices increased by 36.8 percent yoy to $289 per bushel in 2024, while Robusta coffee prices surged by 71.6 percent yoy to $4,274 per tonne. Both experienced significant declines in global production, with El Niño affecting almost 60 percent of Robusta-growing areas in Indonesia. Cocoa prices experienced an unprecedented rise, skyrocketing by 148.8 percent yoy to $8,226 per tonne due to a 14 percent drop in global production caused by the cocoa swollen shoot virus (CSSV) disease, which has severely impacted Africa, the world’s largest cocoa-producing continent. Natural rubber prices also saw a 26.6 percent yoy increase, averaging $1.74 per kilogram in 2024, mainly due to a drop in production in Thailand.

Prospects

Every Monday

With exclusive interviews and in-depth coverage of the region's most pressing business issues, "Prospects" is the go-to source for staying ahead of the curve in Indonesia's rapidly evolving business landscape.

By registering, you agree with The Jakarta Post's

Thank You

for signing up our newsletter!

Please check your email for your newsletter subscription.

View More Newsletter

Indonesia plantation commodities export for 11M24 (in million US$)
Indonesia plantation commodities export for 11M24 (in million US$) (Statistics Indonesia (BPS)/-)

to Read Full Story

  • Unlimited access to our web and app content
  • e-Post daily digital newspaper
  • No advertisements, no interruptions
  • Privileged access to our events and programs
  • Subscription to our newsletters
or

Purchase access to this article for

We accept

TJP - Visa
TJP - Mastercard
TJP - GoPay

Redirecting you to payment page

Pay per article

Riding the wave: Momentum in Indonesia’s plantation sectors

Rp 29,000 / article

1
Create your free account
By proceeding, you consent to the revised Terms of Use, and Privacy Policy.
Already have an account?

2
  • Palmerat Barat No. 142-143
  • Central Jakarta
  • DKI Jakarta
  • Indonesia
  • 10270
  • +6283816779933
2
Total Rp 29,000

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Continue in the app

Get the best experience—faster access, exclusive features, and a seamless way to stay updated.