Jakarta, Indonesianpost.com – Reported by Antara, The Indonesian government is ramping up efforts to strengthen the palm oil industry’s downstream sector through research and higher education, according to Minister of Higher Education, Science, and Technology Brian Yuliarto.
Speaking on Friday, Yuliarto emphasized palm oil’s role as a key economic driver but acknowledged that its downstream potential remains underdeveloped.
“Palm oil is a strategic commodity, yet its downstream processing is still incomplete. We’re making this a priority project to ensure tangible progress,” he said.
The ministry has teamed up with the Indonesian Palm Oil Board (DMSI) to accelerate research, technological advancements, and value-added processing in the sector.
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One breakthrough includes a new low-temperature palm oil processing method, developed by researchers from the Bandung Institute of Technology (ITB), the University of Indonesia (UI), and industry partners. Unlike traditional methods that require 180-200°C and produce waste, this innovation operates below 80°C, reducing energy use and eliminating liquid waste.
The technology yields high-quality refined bleached and deodorized olein (RBMO) and stearin, which meet international safety standards with minimal 3-MCPD contaminants—a harmful byproduct. These products are now ready for commercial use.
The initiative also includes a cooperative-based business model, where farmers co-own processing plants and eventually gain full control. The government plans to pilot this approach across one million hectares of smallholder plantations.
Currently, about 34.8% of Indonesia’s 6.88 million hectares of smallholder plantations need replanting to increase productivity from 9.2 to 21.3 tons per hectare. The project, requiring an estimated Rp171 trillion (US$10.4 billion) in investment, is expected to:
– Boost annual industry revenue from Rp61.5 trillion (US$3.7 billion) to Rp142.7 trillion (US$8.7 billion) by 2029.
– Generate jobs for over 16 million farmers and their families.
Yuliarto stressed that the new processing method not only cuts emissions and waste but also enhances farmers’ incomes. “This is energy-efficient, environmentally friendly, and designed to uplift local economies,” he said.
With these efforts, Indonesia aims to transform its palm oil sector into a higher-value, sustainable industry, balancing economic growth with environmental responsibility. (BL)