InfoSAWIT, JAKARTA — Palm oil is increasingly viewed as a strategic geopolitical and geo-economic commodity rather than merely an agricultural product, as the global shift from fossil fuels to renewable energy elevates the role of vegetable-based resources, according to academic experts.

Prof Zulkarnain of Mulawarman University’s Faculty of Agriculture said palm oil now plays a growing role in international power and policy relations, driven by the global energy transition.

Speaking at a seminar at UPN Veteran Yogyakarta attended by InfoSAWIT on 22 January 2026, he said agricultural commodities are no longer seen purely as supply goods but also as strategic instruments in cross-country relations.

“The shift from fossil to renewable energy has repositioned agricultural commodities as strategic geopolitical-economic assets. Palm oil is now part of international policy and trade contestation,” he said.

He noted that palm oil remains the world’s most productive vegetable oil crop and a major contributor to global supply for food, energy, and manufacturing industries. However, its dominance has also triggered tighter regulations, criticism, and policy disputes internationally — a sign of its elevated strategic status.

According to Zulkarnain, global vegetable oil production is concentrated among a limited number of countries, while Indonesia holds a unique advantage with year-round output and diverse downstream palm-based products.

He added that constitutional and legal frameworks support classifying palm oil as a strategic national commodity, citing provisions in the 1945 Constitution on state control over vital production branches and economic sustainability principles, along with laws on food and energy.

Based on technical, environmental, social, and economic studies, he said palm oil plantations contribute positively to regional and national development and strengthen Indonesia’s bargaining position in global geo-economics.

Academics are therefore encouraging cross-disciplinary expert collaboration to formally propose palm oil’s designation as a strategic national commodity to the government, as a long-term policy foundation for food, energy, and economic sovereignty. (T2)