September 8, 2014

Indonesia is expected to keep its ranking as the world’s number one palm oil producing country.  Palm oil production is expected to increase 7.8% on average per year between 2011 and 2020, outpacing Malaysia’s projected growth rate of 2.7% and the overall global growth rate of 5.9% according to Frost & Sullivan.  Driving this sustained increase in production is an expected expansion of area of cultivation.  Indonesia is expected to see a growth of 6.7% per year in planted area equal to 420,000 hectares per year compared to Malaysia’s expected growth of planted area of 3.5% or 150,000 hectares per year.  Forty nine percent of Indonesia’s planted area is still under eight years of age – meaning that as more acreage matures, increases in production will be supported for the long term.  The Indonesian industry still faces certain hurdles though – increasing production costs, low yields, and consumer demand for sustainability within the industry.  To read further how the Indonesian palm oil sector can address these issues:

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