Indonesia Attracted Over $3.7 Billion in Investments for Palm Oil Processing Development in 2025
In 2025, Indonesia attracted over 62.8 trillion rupiah, equivalent to more than $3.7 billion, for the development of the palm oil sector. These investments are aimed at creating high-value products from raw materials, allowing the country to increase the added value of its agricultural resources and achieve greater economic impact.
This is reported by AgroReview
Focus on Processing and Innovation
The Minister of Investment, Rosan Roeslani, emphasized that the strategy for developing downstream processing in Indonesia aims not only to improve economic indicators but also to create additional jobs, implement innovations, and utilize human capital. According to the minister, the government will continue to encourage the development of the palm oil processing industry, focusing on maximizing the use of domestic potential.
“We will continue to promote such activities in the palm sector,” Roeslani emphasized.
Expanding Investments in Related Sectors
In addition to palm oil, recently Indonesia attracted about 6.6 trillion rupiah in investments in so-called “other forestry sectors,” including the production of nutmeg, pine, coconut, cocoa, as well as the development of biofuels. Although the exact ratio of domestic to foreign investments is not disclosed, the government emphasizes the importance of developing industrial processing of raw materials as a key priority for the economy.
The policy of promoting processing is not limited to the agricultural and forestry sectors. Significant investments are directed towards the mining, fishing, and oil industries. In particular, investments in nickel processing reached 185.2 trillion rupiah (almost $11 billion), nearly three times the investments in the palm oil sector. The export ban on unprocessed nickel ore, introduced in 2020, has stimulated domestic industrial processing and further economic development of the country.
Indonesia remains a leading global exporter of palm oil and actively uses it to reduce fuel imports. Currently, the country has a B40 policy, which mandates 40% palm oil content in biofuels. Authorities plan to increase this share to 50% (B50) in the second half of the current year, taking into account the results of trials and price dynamics in the oil and palm oil markets.