Indonesia began to grow oil palm in small scale in 1911. In 2006, palm oil production ranked first in the world. In 2007, the oil palm harvest area ranked first in the world. In 2009, the output of oil palm fruit ranked first in the world. To further explore the development prospects of the oil palm industry in Indonesia, the development of the oil palm industry in Indonesia is discussed, and the oil palm harvested area and yield and palm oil production in Indonesia are analyzed in this paper. The results showed that the oil palm harvested area in Indonesia showed an increasing trend from 1980 to 2016. During the period from 1980 to 1993, the oil palm harvested area was slowly increasing. In 2002-2016, the oil palm harvested area was growing rapidly, and the oil palm harvested area was 9.33 million ha in 2016. The growth trend of the oil palm fruit production was obvious in 2008-2016, and the oil palm fruit yield was 161.4 million t in 2016. The palm oil production increased slowly from 1980 to 1999. During the period 2000-2014, the palm oil production increased by a large margin. In 2014, the palm oil production was 29.28 million t. It is believed that the area of oil palm in Indonesia will continue to expand, and there is a development space of at least 1 500 000 to 2 000 000 ha. The oil palm fruit production and palm oil production in Indonesia will continue to increase in the coming years. Indonesia has unique advantages for the development of oil palm industry, with great potential for development.