Navigating Economic Resilience and Transformation: Challenges and Opportunities for Indonesia's Palm Oil Industry from Upstream to Downstream in 2026

This journal discusses the strategic position of Indonesia's oil palm industry in 2026 amidst economic recovery, the B50 mandate, and global sustainability pressures. The study aims to analyze the challenges and opportunities for transformation from upstream to downstream. The method used is a qualitative literature review with a value chain approach and policy analysis. The results indicate a productivity gap among smallholders, land governance risks, and the food-energy-export dilemma. Downstream industrialization and sustainability certification are considered key to increasing added value and competitiveness. The implications are the need for adaptive policies, strengthening downstream processes, and including smallholders to support sustainable growth.