Indonesia'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.Looking ahead to 2025, the plantation sector’s outlook appears optimistic. 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.Indonesia’s plantation sector currently is in a favorable condition, the country can position itself as a leader in the global agricultural market. The challenges faced by CPO in 2024 serve as a reminder of the need for diversification and innovation. With coordinated efforts from the government, businesses and farmers, Indonesia’s plantation sector can achieve sustainable growth and continue to be a vital contributor to the nation’s economy.Source: https://www.thejakartapost.com/business/2025/01/15/riding-the-wave-momentum-in-indonesias-plantation-sectors.html (ICE GIACARTA)

Fonte notizia: The Jakarta Post, 15 January 2025