Forest, paper and packaging

Alternate paragraph:

Indonesia’s forest, paper, and packaging sector continues to strengthen its role within the country’s broader plantation‑based economy, leveraging one of the world’s largest forest estates—approximately 120 million hectares—as the foundation for industrial plantation forests and large‑scale pulp and paper production. Rising demand for sustainable, recyclable, and biodegradable materials is accelerating the shift toward paper‑based packaging, with the Indonesian market valued at USD 16.02 billion and expanding across food, beverage, pharmaceutical, and e‑commerce industries. Closely integrated with Indonesia’s wider plantation markets, the sector supports circular, renewable supply chains and reinforces the country’s strategic position as a leading provider of sustainable packaging solutions.

Sources: Indonesian palm oil exports and deforestation

Indonesia’s Palm Oil Industry 2025: Market Insights, Challenges, and Opportunities

The palm oil industry remains a cornerstone of Indonesia’s plantation sector and a critical contributor to the national economy, accounting for approximately 11% of Indonesia’s total exports. As a strategic commodity, palm oil continues to play a central role in supporting economic growth, employment, and foreign exchange earnings, while also shaping Indonesia’s position in global agricultural supply chains.

As the world’s largest palm oil producer, supported by nearly 14.9 million hectares of plantations and annual production of around 44.5 million metric tonnes of crude palm oil, Indonesia’s scale and integrated value chain so you can address global supply, regulatory and sustainability expectations with confidence.

Sources: PwC Plantation NewsFlash 2021 (turn1search5)

PwC Plantation sector page (turn1search7)

How PwC can help you

PwC Indonesia supports organisations across the plantation, forest, paper and packaging sectors by combining deep industry insight with integrated audit, tax, accounting and advisory capabilities.

Leveraging Indonesia’s extensive plantation base and one of the world’s largest forest estates, we help clients navigate regulatory change, strengthen sustainability practices and enhance transparency across their operations.

As demand continues to shift toward renewable, recyclable and environmentally responsible packaging solutions, our team provides the strategic guidance and digital tools needed to manage risks, build trust and capture long‑term value in Indonesia’s evolving natural‑resource markets.

Create value through ESG

Companies and organisations are looking to identify and respond to their ESG risks and opportunities. Active management of ESG issues can directly impact the bottom line as well as a company’s reputation and social licence to operate. Our range of services will help you better understand the ESG value creation journey and how PwC can assist you to fulfill your ESG needs.

Insights

November 2021

Plantation NewsFlash - 2021: A Recovery Momentum and Journey to Sustainable Industry

Threat and opportunities from the recovery of palm oil industry in Indonesia / Indonesian palm oil companies can mitigate key Environmental, Social and Governance (“ESG”) risks by being proactive / Legal reform in the plantation sector / Imposition of the carbon tax through the Harmonisation of Tax Regulations (“HPP”) Law / Palm oil industry recovery – right momentum for IPO.

December 2018

Plantation News - 2018 Update

Overview of palm oil industry landscape in Indonesia/ Online Single Submission (OSS) – New Digital Platform for Business Licenses/ Implementation of Indonesian Statement of Financial Accounting Standards (“PSAK”) 69, “Agriculture” in the palm oil industry/

Highlights of Updated Tax Regulations/ Data Analytics, the first step towards better insight.

August 2015

Plantation NewsFlash: Industry landscape, regulatory and financial overview

Considerations surrounding mandatory use of L/C in exports of CPO and CPKO/ Challenges faced by palm plantation companies/ Traceability, the first step towards sustainability.