The Strategic Importance of Palm Oil Exchange Development to Support the Empowerment of the Palm Oil Trade in Indonesia

Abstract

Indonesia, as the world’s largest producer and exporter of crude palm oil (CPO), plays a central role in the global palm oil market. However, its trade is highly susceptible to price volatility, dependence on external markets, and a lack of domestic price-setting mechanisms. The absence of a national palm oil exchange limits transparency, weakens producer bargaining power, and exposes the industry to policy shocks and international pressure. In response to these challenges, this study explores the strategic significance of establishing a palm oil exchange in Indonesia to enhance trade stability and national competitiveness. This qualitative study employs the Systematic Literature Review (SLR) method, guided by the PRISMA framework. Data were gathered from the ScienceDirect database using refined keyword searches, yielding 1,425 initial records. Through a structured screening process focusing on publication years (2021–2025), article types, and open-access status, 32 relevant peer-reviewed articles were selected for analysis. Data were coded and thematically analyzed to synthesize critical insights. The results show that a national palm oil exchange can serve as an essential instrument to improve price transparency, promote inclusive stakeholder participation, and reduce dependence on foreign exchanges such as Bursa Malaysia. It also aligns with digital innovation and sustainability initiatives in the agribusiness sector. In conclusion, palm oil exchange development offers structural advantages for stabilizing trade mechanisms. Future studies should examine regulatory readiness, institutional design models, and integration with sustainability
certification systems.