How will Indonesia’s palm oil market affect future CPO demand?
The Indonesian export of palm oil grew from 3.4 billion USD to 17.5 billion USD between 2004 and 2014 ¨C that is, from 5% to 10% of the total export value in 10 years [Citation 44]. The development of the vegetable oil market could have a significant impact on future CPO demand.
Why is the export of palm oil important for Indonesian producers?
The export of palm oil is very important for Indonesian producers as the market is well established and growing. The Indonesian export of palm oil grew from 3.4 billion USD to 17.5 billion USD between 2004 and 2014 ¨C that is, from 5% to 10% of the total export value in 10 years [Citation 44].
How much palm oil is produced in Indonesia?
Palm oil production contributes around 2.5% to Indonesia’s total GDP and employs up to 8 million people in farming and processing (ILO, 2019; Ministry of Agriculture Indonesia, 2019a ). Indonesia is the world’s largest palm oil producer and exporter worldwide (Qaim et al., 2020 ).
Does oil palm cultivation contribute to structural transformation in Indonesia?
In this article, we analyzed to what extent the adoption and cultivation of oil palm contributes to structural transformation in Indonesia. Indonesia has seen a rapid expansion of oil palm cultivation in recent decades. The country is now the biggest palm oil producer and exporter worldwide.