The Journal of Indonesia Sustainable Development Planning (JISDeP)
Vol 6 No 2 (2025): August

Policy Strategy to Stimulate Indonesia’s Palm Oil Downstream Industries

Yulia Setia Lestari (Unknown)
Muzzar Kresna (Unknown)
Nur Hadiati Endah (Unknown)
Nailatalmuna Nitrasatri Atmaja (Unknown)
Irwanto, Eristya Puspitadewi (Unknown)
Brian Pratistha (Unknown)



Article Info

Publish Date
24 Aug 2025

Abstract

The Indonesian government has prioritized downstream industrial development to enhance the economic value of domestically produced palm oil. This initiative targets three strategic sectors: oleo-food, oleochemicals, and bioenergy. The advancement of these industries entails more than an expansion of upstream production; it requires a nuanced understanding of each sector’s absorption and production capacities. This study employs the Analytic Hierarchy Process (AHP) to assess investment characteristics and competitiveness within these downstream sectors. The findings identify six critical policy factors to stimulate investment: tax incentives, the establishment of special economic zones, improved plantation productivity, favorable pricing for fresh fruit bunches (FFB), enhanced access to agroindustrial financing, and the integration of upstream and downstream operations. These elements are essential for fostering a conducive investment climate and advancing the transformation of Indonesia’s palm oil sector to support broader national economic development goals.

Copyrights © 2025






Journal Info

Abbrev

jisdep

Publisher

Subject

Economics, Econometrics & Finance Energy Environmental Science Law, Crime, Criminology & Criminal Justice Social Sciences

Description

The journal aimed at studying the issues of sustainable development (in terms of politics, economics, social, culture, environment, peace and justice, energy, and other strategic issues) from around the world to later be used as policy material in sustainable development planning in Indonesia, ...