Indonesia is the world's largest palm oil producer, contributing over 60% of global supply and generating more than USD 28 billion in export value annually. The sector employs over 16 million people and remains a backbone of the national economy. However, it also accounts for one of the highest shares of land-use emissions in Southeast Asia, with deforestation and peatland conversion linked to the industry responsible for an estimated 900 million tonnes of CO₂ equivalent per year.z

Global markets are accelerating their sustainability demands: the EU Deforestation Regulation (EUDR), effective 2025, mandates supply chain traceability down to the plot level  threatening market access for non-compliant producers. Meanwhile, buyers from Europe, China, and North America are enforcing ESG supplier codes, RSPO certification, and carbon footprint disclosures. Indonesian producers must now demonstrate verified sustainability performance or face exclusion from premium markets. The window to act is narrowing and early movers gain the greatest strategic advantage.