Palm oil, extracted from the tropical fruit of oil palm trees, stands as one of the most widely consumed vegetable oils globally, owing to its versatility and cost-effectiveness in production. Its high yield and stability further bolster its widespread use. Palm oil exists in two main forms: crude palm oil and palm kernel oil, both integral ingredients in numerous products spanning various industries, such as cooking oils, cosmetics, biofuels, and food items (Palm oil in Indonesia, n.d.). The demand for palm oil continues to surge, prompting its production in tropical regions across multiple continents, including Asia, Africa, and Latin America. 

Indonesia holds the title of the largest global producer of palm oil, accounting for more than half of the world's production. This industry plays a pivotal role in Indonesia's economy, involving approximately 3.7 million Indonesians in its production (Statista, 2024). Unlike other major palm oil producers such as Malaysia, Indonesia utilizes a fair portion of the palm oil it produces domestically, for both energy and food purposes. The production of palm oil occupies a significant portion of the country's dry land, making it one of its largest industries both economically and in terms of physical footprint. In 2022, Indonesia exported palm oil worth $28.7 billion, ranking it as the country's second most exported product (FAO, n.d.). These factors collectively establish Indonesia as one of the cornerstones of the global palm oil industry.