The Eurozone and United States have been conducting anti-palm oil campaigns in recent years, which have negatively impacted Indonesian exports of crude palm oil. Criticism is particularly directed at the expansion of palm oil plantations through illegal logging. The Indonesian government, however, asserts that the domestic palm oil and rubber industries are now pro-sustainable development.

The APEC Environmental Goods List contains 54 items that are labeled environmentally friendly (for example solar panels or energy saving lamps). The advantage of being listed is that import duties on these products fall by 5 percent.

The palm oil industry is one of the most important industries of Indonesia as it contributes a significant portion to the country's foreign exchange earnings and provides employment to four million Indonesians. Earnings in Indonesia's plantation sector are dominated by palm oil, which accounts for 24 percent of total non oil & gas exports and 19 percent of total Indonesian exports. As such, it forms an important pillar of the Indonesian economy.

Global palm oil production is dominated by Indonesia and Malaysia. These two countries together account for around 85 to 90 percent of total global palm oil production. Indonesia is currently the largest producer and exporter of palm oil worldwide.

Indonesia is the world's second-largest producer of rubber (after Thailand). Since the 1980's, the Indonesian rubber industry has shown a steady increase in production rates. Most of the country's rubber production - around 80 percent - is accounted for by smallhold farmers.

Indonesia's Palm Oil Production and Export:

     2008    2009    2010    2011    2012    2013¹
(million metric tonnes)
   19.2    19.4    21.8    23.5    26.5    28.0
(million metric tonnes)
   14.2    15.5    15.6    16.5    18.1    21.0
(in USD$ billion)
   15.6    10.0    16.4    20.2    21.6  

¹ indicates forecast
Sources: Food and Agriculture Organization of the United Nations, Indonesian Palm Oil Producers Association (Gapki) and Indonesian Ministry of Agriculture

Indonesia's Natural Rubber Production and Export:

      2008     2009     2010     2011     2012
(in million tonnes)
    2.75     2.44     2.73     3.09     3.04     3.20
(in million tonnes)
    2.30     1.99     2.20     2.55     2.80     2.70

¹ indicates a forecast
Sources: Association of Natural Rubber Producing Countries, Indonesian Rubber Association (Gapkindo), and Food and Agriculture Organization of the United Nations