InfoSAWIT, BANDUNG — The government’s efforts to strengthen the downstream palm oil industry are being intensified, including through the utilization of palm oil waste as raw materials for high-tech industries. Putu Juli Ardika, Director General of Agro Industry at the Ministry of Industry, revealed that Indonesia is currently catching up in the development of technology for processing empty fruit bunches (TKKS), which has been previously developed in neighboring countries like Thailand.
“When asked if the factories are already there, yes, Thailand has already produced various materials from palm oil waste. But we do not want to be left behind. Indonesia is now starting to bring that technology domestically, and we can also produce the main components independently,” Putu stated during a seminar attended by InfoSAWIT in early July 2025 in Bandung.
He noted that machines and TKKS fractionation technology are now being developed domestically, including through collaborations with universities. One such initiative is taking place in Bogor, which has several small-scale palm oil plantations as testing grounds.
“The technological innovations are continuously evolving. One of the developments is currently underway in Banten. We are now at a higher stage, not just burning palm oil waste, but utilizing it to create value-added products such as porous paper and biodegradable plastics for environmentally friendly packaging,” he explained.
Furthermore, Putu emphasized that the utilization of palm oil waste is now targeting high-value sectors. For instance, TKKS, which was previously only burned or processed into compost, can now be converted into activated carbon, which is then used as a raw material for supercapacitors—an essential component in energy storage for electric vehicles and electronic devices.
“Imagine, from waste that was initially valued at only USD 10-80 per ton, it can become a final product worth USD 140 or even higher when it reaches the activated carbon and supercapacitor stage,” he added.
The Ministry of Industry views this downstreaming initiative as a manifestation of cross-ministerial and agency synergy to create a palm oil industry ecosystem that is not only sustainable but also oriented towards innovation and technology.
“We can no longer rely solely on crude palm oil exports. We must pursue added value. The government is serious, many ministries are involved, and coordination is ongoing,” Putu stated.
With the development of local machinery, research collaborations with universities, and cross-sector policy support, Indonesia is now on the right track to transform palm oil waste into a new force in the green industry. (T2)
