China has asked Indonesia to guarantee long-term supplies of crude palm oil (CPO), natural rubber, and edible bird's nests to meet its growing domestic demand. The request was made during a recent visit by China's Deputy Minister of Agricultural and Rural Affairs, Maierdan Mugaiti, to Jakarta.
Deputy Agricultural Minister Sudaryono confirmed the development, noting that Beijing is seeking certainty in palm oil supply given Indonesia's role as the world's largest producer. "China has asked us to guarantee their supply of CPO. They also made a similar request for natural rubber and edible bird's nests," he told reporters on Tuesday.
Trade figures show that Indonesia recorded a $1.77 billion agricultural trade surplus with China in 2024. Palm oil led the pack with $2.72 billion in exports, followed by edible bird's nests ($428 million), rubber ($363 million), coconut ($270 million), and cacao ($218 million).
Sudaryono explained that Indonesia is working to balance international demand with its domestic energy program. The country is currently implementing its B40 biodiesel policy, which blends 40 percent palm oil with diesel fuel, and plans to roll out B50 by next year.
"Palm oil productivity will continue to be strengthened to support the B50 energy program at home and also ensure stable export supplies abroad," Sudaryono said, emphasizing government commitment to sustaining output.
Analysts say China's push for palm oil security underscores the strategic role of agricultural commodities in regional trade. For Indonesia, the challenge lies in boosting production capacity while protecting domestic needs, especially as global buyers compete for the country's palm oil supply.
