Palm oil is one of the prominent agriculture products in most part of Indonesia. Indonesia is the biggest palm oil producer in the world with production rate more than 30 million tons in 2015, though its production rate still below Malaysia. More than 70% of total production exported to international market that includes India, Europe, and China, and other 60 countries. In early 2017, the Government of Indonesia (GoI) set a target of producing 40 million tons of crude palm oil (CPO) by 20204.

In the global market, palm oil is the favorite vegetable oil compared to other vegetable oils due to its highest productivity rates. The demand from global market makes palm oil sector in Indonesia contributes to the state’s income as much as USD 15 billion per year from total export (3% from Indonesia’s Gross Domestic Product). Moreover, palm oil industry is also a source of livelihood for 4 millions of family consist of landowners and plantation workers, and 16 millions of family as indirect workers. More than 40% of palm oil industry consists of small-scale farmers, which means palm oil sector is a driver for development at the village level……see attached document