In recent years, there has been increased investment in palm oil mill construction and increased land productivity.
Its strategic location directly bordering Sarawak (Malaysia) also facilitates the export of Fresh Fruit Bunches (FFB).
4. North Sumatra
North Sumatra produced 5.02 million tons of palm oil in 2023, or approximately 10.7% of national production. The province's oil palm plantations cover approximately 2.02 million hectares.
Major exporting regencies include Langkat, Deli Serdang, and Simalungun.
North Sumatra's competitiveness is also strengthened by the improved Belawan port infrastructure and toll road access, facilitating the distribution of CPO outside the island.
5. East Kalimantan
East Kalimantan ranked fifth with a production of 4.22 million tons, approximately 9.0% of the national total.
Its oil palm plantations cover approximately 1.25 million hectares. Penajam Paser Utara and Kutai Kartanegara Regencies are the heart of the province's palm oil industry.
The MP3EI (Masterplan for the Acceleration and Expansion of Indonesian Economic Development) program also targets an increase in CPO production to more than 20 million tons per year by 2025, with East Kalimantan making a significant contribution.
6. South Sumatra
This province contributes 4.12 million tons of palm oil, or 8.8% of Indonesia's total production. Its plantation area covers 1.19 million hectares.
Banyuasin, Musi Rawas, and Ogan Komering Ilir (OKI) regencies are the largest contributors to FFB production.
Post-harvest handling in several regencies has also been improved to maintain FFB quality, given that South Sumatra is one of the largest FFB producers on the island of Sumatra.
7. Jambi
In seventh place, Jambi produces 2.53 million tons of palm oil, or around 5.4% of the national total. The oil palm area in Jambi reaches 1.03 million hectares.