Riau, the Heart of Indonesia National Palm Oil Production

JAKARTA 20 December 2025 – Riau Province is widely recognized as one of the most strategic regions in Indonesia’s palm oil industry. With vast plantation areas and the presence of major corporate players, Riau has become the backbone of national Crude Palm Oil (CPO) production as well as a key driver of Indonesia’s palm oil exports to global markets.Palm oil has long been one of Indonesia’s flagship commodities, making the country the world’s largest CPO producer. Behind this dominance, control over plantation land or landbank is a crucial factor that determines production capacity, economies of scale, and market power among palm oil companies. Riau holds a pivotal role as the primary location for plantation concessions owned by large national and multinational groups.the following is a list of eigh10t corporate groups with the largest palm oil landholdings in Indonesia, including companies listed on the Indonesia Stock Exchange (IDX) and the Singapore Exchange (SGX):

List of Companies Based on Palm Oil Plantation Area

  1. Astra Group – 284,800 hectares (IDX, Indonesia)
  2. First Resources Ltd – 263,400 hectares (SGX)
  3. Salim Group / Indofood – 241,200 hectares (IDX, Indonesia)
  4. Wilmar International – 230,900 hectares (SGX)
  5. Bumitama Agri Ltd – 187,000 hectares (SGX)
  6. Sampoerna Agro – 167,700 hectares (IDX, Indonesia)
  7. Triputra Group – 161,400 hectares (IDX, Indonesia)
  8. PT Sawit Sumbermas Sarana Tbk – 115,500 hectares (IDX, Indonesia)

In addition, PalmCo, a state owned enterprise (SOE) subholding, is the largest palm oil landowner in Indonesia, with a consolidated total of 586,000 hectares derived from the PT Perkebunan Nusantara (PTPN) Group.Collectively, these large corporate groups control more than 2.7 million hectares of palm oil plantations. Their dominance not only shapes the domestic CPO market but also plays a vital role in the global food and energy supply chains.The concentration of large scale plantations has positioned Riau as a region with exceptionally high production of fresh fruit bunches (FFB) and CPO. Beyond supporting domestic supply, palm oil production from Riau plays a significant role in maintaining the stability of Indonesia’s palm oil exports, serving food, oleochemical, and renewable energy needs such as biodiesel.Riau’s advantage lies not only in its extensive land area but also in its integrated industrial ecosystem. The province is supported by palm oil mills (PKS), export ports, and relatively well developed logistics networks. This makes Riau a crucial hub in both the national and global palm oil supply chains.Amid rising global demand for vegetable oils and biofuel based energy, palm oil production from Riau will not only influence the domestic CPO market but also help determine Indonesia’s position in the global food and energy supply chains.Given its substantial contribution to both regional and national economies, the palm oil sector in Riau remains a vital asset that must be managed sustainably balancing economic growth, community welfare, and environmental preservation.

Source:
CNBC Indonesia – Infographics and articles on the largest palm oil landholdings in Indonesia (24 October), Instagram: CNBC Indonesia 24 Oktober 2025 https: //www.instagram.com/p/DQLKhk6EesA/?igsh=MWgwa3Y5ZWhrdWt5Yw==

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