Jakarta, INTI - Indonesia and other palm oil-producing countries are seeking to strengthen trade cooperation and supply chain partnerships with China by leveraging digital technology and Artificial Intelligence (AI) to improve production efficiency and promote sustainability across the global palm oil industry.

The initiative was discussed at the fourth Sustainable Vegetable Oils Conference (SVOC), held in Shanghai, China, with approximately 220 participants from 11 countries in attendance.

Organized by the Council of Palm Oil Producing Countries (CPOPC), the conference carried the theme Synergies for Sustainability and Resilient Value Chains.

The gathering served as a strategic platform for vegetable oil-producing and consuming countries to strengthen trade relations, improve productivity, and address evolving international market policies.

CPOPC Secretary-General Izzana Salleh emphasized the importance of practical cooperation between palm oil-producing and importing countries in maintaining global trade stability.

"Relative price changes can influence purchasing decisions, while regulatory uncertainty can affect trade flows and investor confidence. Therefore, resilience requires reliable market information, diversified trade relationships, efficient logistics, and predictable policy frameworks. It also requires closer cooperation between producers and buyers to better align supply commitments, sustainability expectations, and commercial incentives," she said.

According to Izzana, growing global demand for vegetable oils must be accompanied by higher productivity through the responsible use of available resources.

She also highlighted the importance of strengthening supply chains to ensure the long-term sustainability of the palm oil industry amid shifting demand patterns and international trade regulations.

CPOPC Member Countries Account for 89% of Global Palm Oil Supply

CPOPC reported that its member countries collectively account for approximately 89% of the world's total palm oil supply.

This substantial contribution places palm oil-producing nations in a strategic position to maintain the availability and stability of vegetable oil supplies in international markets.

The palm oil industry also serves as a major source of livelihood for millions of smallholder farmers and business operators across producing countries.

As a result, improving productivity and strengthening sustainability have become key priorities for maintaining industry competitiveness while supporting the welfare of communities dependent on the sector.

China holds a strategic position in the global palm oil trade, as palm oil is the most widely imported vegetable oil in the country.

A significant proportion of China's palm oil imports comes from CPOPC member countries, including Indonesia.

These established trade relationships underscore the importance of strengthening cooperation between producing nations and China to ensure smooth distribution and build more resilient supply chains.

Indonesia Promotes Sustainable Investment and Palm Oil Trade with China

Indonesia's Ambassador to China and Mongolia, Djauhari Oratmangun, stated that hosting the conference in Shanghai reflected the strong bilateral relationship between Indonesia and China.

He explained that cooperation between the two countries extends beyond commodity trade to include investment development and stronger economic resilience.

The strategic partnership is expected to contribute to economic stability while supporting the development of more inclusive and resilient global supply chains.

As one of the world's leading palm oil producers, Indonesia has a strong interest in expanding market access and ensuring that commodity trade is conducted sustainably.

Meanwhile, Indonesia's Consul General in Shanghai, Berlianto Situngkir, highlighted China's position as the largest trading partner for CPOPC member countries.

Berlianto also emphasized Shanghai's role as an economic hub that supports innovation, productivity improvements, and greater value creation across various industrial sectors.

Cooperation with China remains a key focus in strengthening relationships between palm oil-producing nations and major consumer markets.

Digital Technology and AI Set to Improve Palm Oil Industry Efficiency

Beyond strengthening trade relations, the conference explored the use of digital technology and Artificial Intelligence to enhance productivity across the vegetable oil industry.

Technology integration was highlighted as a key approach to improving production efficiency while ensuring the responsible and sustainable use of resources.

Participants also discussed the implications of the transition toward green policies for the global palm oil industry.

Changes in environmental and trade regulations remain a major concern, as they can influence market access, production costs, and investment decisions across the plantation sector.

Other discussions focused on strengthening smallholder farmers' capabilities to adopt sustainable production practices and respond to evolving market requirements.

Improving farmers' capacity is particularly important given the millions of people whose livelihoods depend on the palm oil industry.

The conference also highlighted the development of biofuels as part of broader efforts to support low-carbon economic growth.

Plant-based fuel development formed part of discussions on utilizing palm oil commodities to support the energy transition and sustainable development.

Through this international forum, palm oil-producing countries are seeking to align trade interests, productivity improvements, and the implementation of sustainability standards.

Stronger cooperation with China, combined with greater technology adoption, is expected to enhance the resilience of global palm oil supply chains while supporting a more efficient and sustainable industry.

Conclusion

Indonesia and other palm oil-producing countries are strengthening their partnerships with China to build a more resilient and sustainable global palm oil industry. By integrating digital technology and AI into production processes, alongside improving trade cooperation, investment, and smallholder capabilities, the initiative aims to enhance productivity, strengthen supply chain resilience, and support the industry's transition toward a more efficient and environmentally responsible future.

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