IfnfoSAWIT, JAKARTA – The Ministry of Industry (Kemenperin) is strengthening the downstreaming of the domestic palm oil industry by promoting the utilization of palm trunks as value-added commodities. One concrete step taken is the facilitation of a Cooperation Agreement (PKS) signing between PalmCo/PTPN IV and the Gerak Nusantara Producers Cooperative (KPGN).
The PKS signing took place at the Adolina Palm Oil Mill in Serdang Bedagai, North Sumatra, on Thursday, April 10, 2025, and was witnessed by leaders and members of Commission VII of the Indonesian House of Representatives during their working visit to the region.
"This PKS is a follow-up to the Memorandum of Understanding (MoU) previously signed between Kemenperin, PalmCo, and KPGN," said Putu Juli Ardika, Director General of Agro Industry at Kemenperin, in an official statement obtained by InfoSAWIT on Tuesday, April 15, 2025.
Putu explained that palm trunks from the replanting process, previously considered waste, now represent a new economic opportunity. Palm trunks are known to produce sap with a high sugar content, which can be processed into high-quality brown sugar.
"In palm oil-producing areas like Serdang Bedagai, the trend of palm sap artisans is on the rise. This indicates the economic potential that can be optimized by palm oil farmers, especially during the replanting phase," he elaborated.
To ensure the brown sugar business from palm sap develops at the small and medium industry (IKM) scale, Putu emphasized the importance of strengthening farmer management, from production to human resources and marketing. Support from experienced artisans is also deemed necessary to guarantee product quality and quantity.
He also encouraged the establishment of institutions that connect farmers with artisans to ensure a more efficient and sustainable supply of raw materials. "This partnership model will accelerate the development of palm oil-based downstream industries at the local level," he stressed.
Investment to process palm sap from one hectare of land is estimated at Rp25 million, including basic equipment. From one palm tree, an average of 6.8 liters of sap can be obtained per day, processed over a period of 1.5 to 2 months.
"If processing is done independently, farmers can achieve a net profit of between Rp18 million and Rp25 million," Putu revealed, based on surveys conducted with several artisans. (T2)
