Agriculture Minister: Strengthening US Dollar is a Positive Momentum for Indonesian Agricultural Exports
Jakarta (ANTARA) - The Minister of Agriculture, Andi Amran Sulaiman, believes that the strengthening of the US dollar against the rupiah serves as a positive momentum to drive the increase of Indonesian agricultural and plantation commodity exports to the global market.
“Specifically for the plantation sector, we are pushing for exports, including palm oil, because this is a good momentum,” said the Minister after attending a Coordination Meeting on the Development and Price Stabilisation Efforts for Fresh Fruit Bunches (FFB) of Oil Palm in Jakarta on Monday.
Amran made these remarks when responding to media inquiries regarding the impact of the rupiah’s weakening against the US dollar on the national agriculture and plantation sectors. According to him, the exchange rate condition, which has breached Rp18,000 per US dollar, must be handled carefully as it has the potential to influence various business activities, including agricultural commodity trading.
Nevertheless, Amran believes that every economic challenge presents opportunities that can be utilised to strengthen the national agricultural sector, particularly through increasing the exports of flagship commodities to global markets. He noted that the plantation sub-sector is one of the sectors poised to benefit from this condition, as Indonesian export products will become increasingly competitive in the international market.
Consequently, the Ministry of Agriculture continues to encourage the acceleration of exports for various leading commodities, including palm oil, horticulture, and food commodities that possess significant market opportunities. Amran emphasised that increased exports are expected to provide greater added value for farmers, thereby improving their welfare alongside the growth of national agricultural trade performance.
“The positive side of the rupiah’s weakness for the plantation sector is that all our exported horticulture and food products should be pushed quickly. We push them quickly so that farmers profit, the farmers profit,” Amran stated.
Previously, the Minister stated that Indonesia’s crude palm oil (CPO) exports are strengthening, reinforcing its position as the world’s palm oil leader, supported by increased domestic production. “If we process our CPO into margarine, cosmetics, and other derivative products, the world will become very dependent on Indonesia. We control more than 60 per cent of the world market. This means Indonesia is very decisive,” said the Minister.
He added that the export performance of CPO and its derivatives reaffirms Indonesia’s strength as a major global player. Data from the Central Bureau of Statistics (BPS) recorded that the export value of CPO and its derivatives during January-February 2026 reached 4.69 billion US dollars, a surge of 26.40 per cent compared to 3.71 billion US dollars during the same period the previous year. This surge was evident in both value and volume, with exports increasing from 3.33 million tonnes to 4.54 million tonnes during the same period.
This increase demonstrates that global demand for Indonesian palm-based products remains very strong, while also reinforcing the competitiveness of this commodity in the international market. He also noted that according to an official statement from the Indonesian Palm Oil Association (GAPKI) on 13 March 2026, Indonesia’s CPO production throughout 2025 reached 51.66 million tonnes, an increase of 7.26 per cent (approximately 3.5 million tonnes) compared to the previous year. Meanwhile, total production of CPO and PKO (palm kernel oil) was recorded at 56.55 million tonnes, up 7.18 per cent. From a trade perspective, exports of Indonesian palm products throughout 2025 also showed very strong growth. Export volume reached 32.34 million tonnes, up 9.51 per cent, with the value reaching 35.87 billion US dollars, a 29.23 per cent surge compared to the previous year.