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Advantages and Innovations in The Utilization Of Oil Palm Biomass Turning “Waste” Into “Gold”

  • First Published : Juli 16, 2025 11:29 am
  • Last Update : September 3, 2025 12:02 pm
Dr. Ir. Tungkot Sipayung
JOURNAL AUTHOR

Dr. ir. tungkot sipayung

Executive Director at PASPI

Dr. Ir. Tungkot Sipayung is a seasoned professional in the palm oil industry with over 23 years of experience. Currently serving as Executive Director of PASPI, he is a recognized leader and expert in the development of agribusiness strategies. Under his leadership, PASPI continues to drive growth, innovation, and sustainability in the industry.

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CITE THIS JOURNAL ARTICLE
PASPI. (2025). Advantages and Innovations in The Utilization Of Oil Palm Biomass Turning “Waste” Into “Gold”. JOURNAL ANALYSIS OF PALM OIL STRATEGIC ISSUES. V(03). https://palmoilina.asia/wp-content/uploads/2025/08/ADVANTAGES-AND-INNOVATIONS-IN-THE-UTILIZATION-OF-OIL-PALM-BIOMASS-TURNING-WASTE-INTO-GOLD.pdf
PASPI. Advantages and Innovations in The Utilization Of Oil Palm Biomass Turning “Waste” Into “Gold”. JOURNAL ANALYSIS OF PALM OIL STRATEGIC ISSUES. 2025;V(03): 21-31 . Available from: https://palmoilina.asia/wp-content/uploads/2025/08/ADVANTAGES-AND-INNOVATIONS-IN-THE-UTILIZATION-OF-OIL-PALM-BIOMASS-TURNING-WASTE-INTO-GOLD.pdf.
PASPI. "Advantages and Innovations in The Utilization Of Oil Palm Biomass Turning “Waste” Into “Gold”." JOURNAL ANALYSIS OF PALM OIL STRATEGIC ISSUES, vol. V, 2025, pp. 21-31. https://palmoilina.asia/wp-content/uploads/2025/08/ADVANTAGES-AND-INNOVATIONS-IN-THE-UTILIZATION-OF-OIL-PALM-BIOMASS-TURNING-WASTE-INTO-GOLD.pdf. Diakses Pada : .

TLDR

Indonesia’s palm biomass holds immense potential for circular economy transformation, with the ability to generate 8–9 times higher added value through downstream technology innovation. This aligns with green energy policies and creates new downstream industry opportunities.

Indonesia’s palm biomass has become a strategic focus in national green energy policy, particularly amid international pressure to achieve circular and sustainable economic targets. With oil palm plantations spanning 16.8 million hectares in 2025, the country’s biomass production potential reaches 261.7 million tons of dry matter annually. This positions Indonesia as the world’s largest palm biomass producer, opening new downstream industry opportunities that can transform rural economies through palm solid waste utilization.

The urgency to harness palm biomass is growing in line with global renewable energy policies, including the EU Renewable Energy Directive (RED) and the US Renewable Fuel Standard (RFS), both of which encourage second-generation bioenergy as a sustainable solution. In this context, palm biomass offers unique competitive advantages compared to other renewable energy sources—namely year-round availability, low production costs, and minimal environmental impact.

Why Is Palm Biomass a Priority in Indonesia’s Green Energy Policy?

Palm biomass is a priority for Indonesia’s green energy strategy due to five main competitive strengths. First, it is a joint product of palm oil production, ensuring guaranteed availability as long as plantations operate. Second, it is produced in large volumes year-round, concentrated around palm oil mills (PKS), which lowers collection costs. Third, production costs remain low since it is part of palm oil’s production cycle. Fourth, palm biomass acts as a carbon sink, with zero or low carbon emissions. Fifth, its use in second-generation bioenergy avoids the food-versus-fuel conflict.

biomassa sawit
Figure 1. Biomass Production (in Dry Matter) from Indonesia’s Oil Palm Plantations

With an annual production potential of 261.7 million tons, palm biomass can serve as a backbone for Indonesia’s renewable energy development. The downstreaming of palm biomass aligns with global commitments to reduce carbon emissions and fossil fuel dependency. Beyond strengthening energy security, this approach creates new economic opportunities in the downstream industry.

How Is Technology Innovation Turning Palm Solid Waste Into Downstream Industry Opportunities?

Technological innovation has unlocked more advanced uses of palm biomass, far beyond traditional applications like fertilizer or boiler fuel. The Palm Oil Plantation Fund Management Agency (BPDPKS), through its Palm Research Grant (GRS) program, has facilitated pioneering research to extract higher value from empty fruit bunches, shells, and fronds.

Peningkatan Nilai Tambah pada Hilirisasi Biomassa Sawit
Figure 2. Value-Added Enhancement in Palm Biomass Downstreaming (Source: Ministry of Industry, 2025)

Key breakthroughs include bioethanol, biopolymers, bioplastics, glucose, and organic acids from empty fruit bunches. Palm shells have been transformed into construction materials such as PalmCrete® and electrode materials for supercapacitors. Palm fronds have been used to produce bio-crude oil and methanol. Additional research explores products such as mycelium-based leather for fashion, cellulose-based hydrogels, and aerogel materials.

These innovations mark a paradigm shift: palm biomass is no longer seen as “waste” but as a valuable resource. Through thermochemical, biological, chemical, and physical processes, palm biomass can be converted into environmentally friendly, high-value products.

What Are the Challenges in Implementing Palm Biomass Utilization Policy?

Despite its vast potential, several challenges hinder palm biomass utilization. Many innovations remain at the research and development stage and require significant investment to scale up for industrial use. Supporting infrastructure for biomass collection, transportation, and processing in rural areas also needs improvement.

Policy coordination among government institutions and private stakeholders is another challenge. Building markets for new downstream products is equally crucial, as many are still emerging and require market education. Addressing these issues calls for multi-stakeholder collaboration and consistent policy support to unlock palm biomass as Indonesia’s “new gold.”

Conclusion

As the world’s largest palm oil producer, Indonesia has abundant palm biomass resources. Through technological innovation, this biomass can be transformed from “waste” into “gold,” generating significant economic value and advancing the circular economy. By overcoming implementation challenges, Indonesia can solidify its leadership in renewable energy and sustainable development.

ACKNOWLEDGEMENT

The author gratefully acknowledges the financial support provided by the Palm Oil Plantation Fund Management Agency (BPDP) in the preparation of this journal article.

To access the original journal article, you can download the file by clicking the button below.

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