Jakarta. World’s largest palm oil producer Indonesia reported Tuesday that it had attracted investment worth hundreds of millions of American dollars in the first quarter of 2025 to capture more value out of its top commodity.

The resource-rich Indonesia is currently developing its refining and manufacturing industries to be able to export high-value products. The country is also open to both foreign and domestic investors who wish to help Indonesia move up the value chain. This grand plan to date is still heavily concentrated on nickel processing, although work is underway to develop the downstream industries in other commodities, including palm oil of which Indonesia is abundant. 

Investment Minister Rosan Roeslani told a news conference on Tuesday that Indonesia recorded around Rp 15.26 trillion worth of realized investment in palm oil processing in January-March 2025. This is equivalent to around $916 million worth of fresh investments needed to help Indonesia turn palm oil into high-value products. The figures are still about a third of what the nickel processing sector secured in Q1 2025, which totaled Rp 47.82 trillion.

“Nickel and its derivatives have been dominating our industrialization investments. … However, we have long been developing our palm oil industries. We will continue to encourage the development of its derivatives, so we can capture more added value and create even more job opportunities,” Rosan told a news conference in Jakarta.

Q1 2025 data showed that palm oil was the most popular among investors who wish to develop Indonesia’s plantation and forestry sector. Followed by log wood (Rp 11.79 trillion) and rubber (Rp 3.08 trillion). Investors had put around Rp 990 billion in other plantation commodities (i.e. nutmegs, coconuts, cacao, and biofuel). Rosan did not say where these investors had come from. However, Malaysia had invested approximately $400 million in Indonesian downstream industry with about 54.5 percent going to the forestry sector.

Indonesia exported 2.2 million tons of palm oil in 2024, according to data compiled by the country’s producers. This marked a decline from the 2.5 million ton export recorded the previous year. The 2024 export was worth around $2.9 billion. Both Indonesia and Malaysia make up around 85 percent of the global palm oil supply.