Palm Oil Downstream Product Reaches 200 Types, Up Fivefold In The Last 10 Years

Illustration (Photo: Doc Antara)

JAKARTA - The Ministry of Industry (Kemenperin) stated that palm oil downstream products have now reached 200 types, up almost five times in the last 10 years which recorded only 45 types.

Director General of Agro Industry of the Ministry of Industry Putu Juli Ardika stated that the development of the diversification of palm oil products is proof of the implementation of research and innovation in the commercial industry in the country.

"Kelapa sawit is a model and a successful example of industrial downstreaming, be it to produce food palm derivative products (oleofood), non-ecochemicals, renewable fuels (biofuels), to new environmentally friendly materials (biotherials), on a sustainable industrial scale," Putu said as quoted by ANTARA, Friday, October 4.

From the results of this diversification, said Putu, it contributed to the export value of palm oil and its derivatives which reached Rp450 trillion or contributed 11.6 percent of the total national non-oil and gas exports in 2023.

He conveyed that this sector has also absorbed 16.2 million workers, including indirect workers who involve people's plantation businesses or smallholders.

Seeing this great potential, the Ministry of Industry supports the efforts of various parties in the development of technological innovations in the palm oil processing industry, both in the upstream plantation sector to the downstream sector in the processing industry.

"We are also trying to facilitate industrial technology development through the preparation of pro-novation policies, to matching between parties related to the commercialization of new innovations," he said.

Furthermore, Putu assessed, the importance of establishing a multi-party consortium in research activities to produce superior products.

One example of the success of the research consortium facilitated by the Ministry of Industry is palm oil-based edible-coating technology to extend the shelf life of tropical fruit.

"This research, which is supported by the Ministry of Industry, has succeeded in bridging industrial needs with research innovations, and is currently in the process of food grade certification for commercialization," he also said.