Analyst Says Minister's CPO Illustration Misinterpreted, Not Comparing to Strait of Hormuz

An agricultural analyst from the United Farmers Alliance, Deby Syahputra, has emphasised that the statement by Agriculture Minister Andi Amran Sulaiman regarding Indonesia’s strength in crude palm oil (CPO) was not intended to compare it with the Strait of Hormuz. According to him, the statement serves as an illustration of Indonesia’s substantial influence in the global market.

“The statement is a depiction of how strong Indonesia’s position is in CPO exports. Therefore, it is highly misleading to interpret it as a comparison with the Strait of Hormuz,” said Deby on Wednesday (1/4/2026).

According to Deby, the narrative suggesting such a comparison is an inappropriate framing that could mislead the public. He assessed that the Minister’s statement aims to highlight Indonesia’s significant bargaining power in the trade of strategic global commodities.

“Do not misinterpret it, especially by framing it that way,” he said.

Indonesia, he continued, currently controls more than 60% of the global CPO export market. With this dominance, Indonesia has the ability to influence the stability of supply and prices in the international market.

“In an extreme scenario, if exports were halted, industries in various countries such as Japan, the United States, and Europe would be significantly impacted,” he said.

Deby added that this strength should be utilised strategically by the government to bolster Indonesia’s position, including through downstream processing policies. This effort is deemed important so that CPO is not only exported in raw form but also processed into higher-value products such as margarine, oleochemicals, and skincare products.

“The government is currently heading towards downstream processing,” he said.

Meanwhile, Agriculture Minister Andi Amran Sulaiman previously emphasised that Indonesia’s dominance in the palm oil commodity is a national strategic asset that can be used to strengthen economic resilience and national independence.

With proper management, the palm oil sector is believed not only to support exports but also to drive resource-based industrialisation domestically.

“So once again, our palm oil strength is very significant, especially in strengthening national independence,” said Amran.