JOURNAL MONITOR EDITION 35 :THE POTENTIAL ECONOMIC VALUE OF PALM OIL WASTE CAN BE ENJOYED BY SMALLHOLDERS
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Indonesia has obtained great economic benefits from palm oil’s main products, namely crude palm oil (CPO) and palm kernel oil (CPKO). However, in the processing of these two products, there is a by-product that is produced, it is waste in a very large amount, both in solid (biomass) and liquid (POME) form. This was initially considered to have no benefit and economic value, but various studies have revealed many potential uses for these waste. And now, this palm biomass and POME which was previously considered as waste has evolved into various kinds of high economic value products such as energy products, hand craft products, organic fertilizers, wooden furniture, animal feed, palm brown sugar, bioplastics to biodisinfectants.
However, with such a large utilization potential, smallholders have loss some of their economic value. This happens because the Fresh Fruit Bunches (FFB) waste that they produced is located and owned by the Palm Oil Mill (PKS) after it is sold. And FFB’s pricing formula also not including FFB’s waste or oil palm waste component, even though the mill enjoys the economic value of the waste.
In addition, the utilization of FFB waste in mill can also be done through cooperation or partnerships between smallholders and palm oil mills. Through this partnership, an agreement was made where smallholder farmers could receive or use part of the waste in the palm oil mil to be applied to their plantations. Thus the benefits and economic value of oil palm waste can be enjoyed by smallholders.