InfoSAWIT, JAKARTA – The Indonesian Ministry of Industry (Kemenperin) is ramping up efforts to strengthen the development of the palm oil downstream industry, aiming to boost global competitiveness. This strategic initiative focuses on three key aspects: securing raw material supply for domestic industries, fostering technological innovation in crude palm oil (CPO) production, and facilitating new investments and industrial expansion.
Director General of Agro Industry at Kemenperin, Putu Juli Ardika, emphasized that these efforts aim to drive growth in the downstream sector by optimizing economic value while enhancing sustainability.
“Looking ahead, Kemenperin will establish a research consortium for potential downstream products, provide biomass processing technology development services at BBSPJIA Bogor, and introduce sustainability traceability regulations under the Indonesian Sustainable Palm Oil (ISPO) framework,” Putu stated during a seminar on Friday (November 22, 2024) in Jakarta, as quoted by InfoSAWIT.
This strategy aligns with Indonesia’s Golden Palm Oil Vision 2045, which targets the production of 240 downstream products and an economic value of IDR 1,146 trillion by 2029. Putu expressed optimism that improvements in the downstream sector would strengthen the value chain from upstream to downstream, while positively impacting domestic consumption and exports.
However, achieving this vision depends on adequate raw material supply. To address this, Kemenperin has outlined two key strategies:
- Increasing plantation productivity through the Oil Palm Productivity (OPP) program.
- Enhancing processing efficiency via improved Oil Extraction Rate (OER) techniques.
Technological Innovations
One of the flagship innovations is the implementation of Steamless-POMELess Palm Oil Technology (SPPOT). This technology produces more nutritious CPO, reduces energy consumption, lowers carbon emissions, and minimizes wastewater. It also supports the establishment of small-scale modular mills (processing 5–10 tons of FFB per hour) that can be owned by farmers under a Build-Operate-Transfer (BOT) scheme.
“Kemenperin also supports the adoption of SPPOT through the agro-industry machinery and equipment restructuring program, offering reimbursement of up to 30% of the machinery purchase price. This facility is expected to accelerate technological transformation in the palm oil processing industry,” Putu explained.
Through these initiatives, Kemenperin aims to fundamentally transform the palm oil industry, leveraging modern technologies to improve efficiency and sustainability.
“With these measures, we are confident that Indonesia’s downstream palm oil industry will become increasingly competitive and significantly contribute to the national economy,” Putu concluded. (T2)
