Oil Palm Industry Economic Journal Vol. 18 (1) March 2018 p. 25-30

Indonesia’s Palm Oil Market – Outlook and Future Trends

Said Achmad Kabiru Rafiie*
Received:    Accepted:    Available Online:


This paper looks at the domestic market for Indonesian palm oil in the light of Indonesia’s position as the biggest producer of palm oil in the world as well as being the most populous country in Southeast Asia with 260 million people. In Indonesia, domestic consumption of palm oil is rising steadiliy. This paper examines the current consumption of palm oil in Indonesia and addresses the key factors pertaining to domestic consumption. It is the culmination of a study using primary and secondary data, which is explanatory in nature and adopts a content analysis approach. The findings aim to help the palm oil industry in Indonesia to further penetrate her domestic market and to expand in the country. The study found that population expansion, economic improvement and government policy have triggered a rise in the domestic consumption of palm oil. The study also provides an inside marketing perspective of Indonesia’s consumer demographics.

Keywords: Indonesian domestic consumption, palm oil, key consumption drivers

About Post Author

* University of Teuku Umar (UTU),
Aceh, Indonesia.

E-mail: srafiie@gmail.com