Indonesia eyes strategic role in global palm oil and halal markets

Indonesia is positioned to play a strategic role in the global vegetable oil market. Projections suggest that palm oil could meet approximately 60 percent of the world's vegetable oil demand by 2050, driven by a rising global population expected to exceed 10 billion and increasing industrial needs for biomaterials and alternative energy.

Domestically, the halal industry is identified as a significant new driver for economic growth. Experts suggest the halal ecosystem, spanning sectors from food and pharmaceuticals to finance and logistics, could contribute between Rp4,900 trillion and Rp5,000 trillion to Indonesia's GDP. Strengthening domestic industry and certification is seen as vital for capturing the growing global Muslim market.

In support of small businesses, the Karya Kreatif Indonesia (KKI) 2026 event reported significant success, with sales reaching Rp144.2 billion and export business matching totaling Rp169.9 billion. The event facilitated connections between 192 MSMEs and buyers from 16 countries. Additionally, Halal Network International (HNI) is expanding its ecosystem to reach the broader Indonesian public, hosting festivals to integrate MSMEs into the halal business landscape.