Indonesia is actively exploring new cooperation potentials with Malaysia and Papua New Guinea to strengthen the value chain of sustainable cocoa and palm products, addressing cross-border challenges like climate change and biodiversity loss through the August 27–28 Regional Learning Forum on Sustainable Commodities.
Regional Collaboration for Sustainable Palm and Cocoa Value Chains
According to Coordinating Ministry for Food Affairs official Nani Hendiarti, the forum serves as a vital platform to identify shared best practices and develop follow-up cooperation proposals. Hendiarti explained that challenges in palm and cocoa development are cross-border issues requiring collective resolution among neighboring nations. The ministry official highlighted the importance of small farmers’ involvement to ensure that sustainable value chain development benefits both producers and the wider community. Cooperation proposals developed during the sessions will translate into concrete policies involving the government, private enterprises, and small farmers alike.
Project Mandates and International Funding Support
Indonesia’s participation is anchored by the Food Systems, Land Use and Restoration (FOLUR) project, which mandates the development of sustainable value chains for palm, cocoa, coffee, and rice. Hendiarti noted that this national project receives crucial support from the Global Environment Facility (GEF), a multilateral environment fund. During the discussions, United Nations Development Programme (UNDP) Resident Representative in Indonesia Sara Ferrer Olivella emphasized that while Indonesia, Malaysia, and Papua New Guinea experience similar challenges, they may require different solutions. Ferrer Olivella added that value chain transformation demands funding support for the private sector while keeping sustainability and small farmers’ interests front and center.
Did You Know? As of 2025, Indonesia recorded 16.83 million hectares of palm plantations across 28 provinces, with 6.93 million hectares managed as people’s farms involving 3.04 million farmers.
Investment Potential and Production Figures
Participants at the Regional Learning Forum shared experiences in FOLUR implementation, sustainable landscaping, sustainability certification, and capacity building for small farmers. Business matching sessions introduced sustainable palm sector initiatives from Indonesia, Malaysia, and Papua New Guinea to potential investors and buyers. Additionally, Indonesia and Papua New Guinea offered clear investment potentials in the cocoa sector, specifically covering processing infrastructure and capacity building for farmers. According to Agriculture Ministry data for 2025, Indonesia’s crude palm oil (CPO) production reached 51.6 million tons—marking a 7.5 percent increase from 2024—while cacao production stood at 616,103 tons with an average land productivity of 714 kilograms per hectare.
Frequently Asked Questions
What is the primary goal of the Regional Learning Forum?
The forum serves as a platform to identify best practices and explore new cooperation potentials between Indonesia, Malaysia, and Papua New Guinea to strengthen the value chain of sustainable cocoa and palm products.
Which commodities are covered under Indonesia’s FOLUR project?
According to the Coordinating Ministry for Food Affairs, the Food Systems, Land Use and Restoration project mandates the development of sustainable value chains for four commodities: palm, cocoa, coffee, and rice.
What were Indonesia’s official production numbers for palm and cacao in 2025?
The Agriculture Ministry recorded crude palm oil production at 51.6 million tons, representing a 7.5 percent increase from 2024, while cacao production reached 616,103 tons.
How will these regional cooperation proposals be implemented?
Proposals will be developed into concrete policies through the involvement of all related stakeholders, including the government, private enterprises, and small farmers.
What role do small farmers play in these sustainable value chains?
Officials highlight that small farmers play a significant role in producing palm and cocoa, making their involvement vital to ensuring that sustainable value chain development benefits both the farmers and the wider community.
What are your thoughts on how regional partnerships can best support smallholder farmers in the sustainable agriculture sector?
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