Crude palm Oil (CPO) and Soybean Oil (SBO) are amongst the highest market share on the world vegetable oil market with more than 60 million MT supplies of CPO (35%) and 46 MT for SBO (27%). The main objective of this research is to identify and explain the policies on palm oil industry development for Indonesian palm producers and synthesizing business policy as well as policy strategy to reach the sustainable competitive advantages of industry especially in sustainable development. This research involves panels of expert which come from various part of palm oil industry's stakeholders, including business players, researcher, academic, association and government institutions. The data was analysed through Analytic Network Process (ANP) based on in depth interviews with the experts both through guided pairwise questionnaire and structured interviews. The result shows that in general, the industry has put more of the focus to the economic goal rather than social and environmental concerns. However, the strategy recommended by this research shows that this industry should put the focus on low cost leadership and organizational process as a combination of eco-efficiency strategy in upstream industry and environmental cost leadership in the downstream industry