Posted in

Circular model seen boosting Indonesia’s palm oil industry

Jakarta (ANTARA) – Indonesia's palm oil industry could unlock higher-value products and strengthen competitiveness by adopting a circular economy model across upstream and downstream operations, according to a researcher at IPB University.Siti Nikmatin from IPB’s Palm Oil Study Center said the approach enables waste conversion into marketable products, though implementation requires scientific expertise and technological development.“The circular economy model can and should be applied in the palm oil industry, but it depends on knowledge and technology to implement effectively,” she said Thursday.Palm oil is considered a zero-waste crop, she said, as nearly all parts of the plant – from fruit and kernels to fronds, empty bunches and trunks – can be processed into usable products.​​​​​​​Nikmatin highlighted empty fruit bunches, known as TKKS, which can be transformed into biomaterials such as helmets, bulletproof vests and footwear.She said her research has produced various innovative products derived from such waste, demonstrating practical applications of circular principles in the sector.Palm kernel shells can also be processed into value-added products that support renewable energy transition, including boiler fuel, construction materials and feedstock for biobriquettes and biopellets.“These efforts to utilize empty fruit bunches into biomaterials are part of applying a circular economy model in the palm oil industry,” she said.Nikmatin, a lecturer at IPB University’s Faculty of Mathematics and Natural Sciences, said her research has received funding support from Indonesia’s Palm Oil Fund Management Agency.“There is clear evidence that the agency supports innovative research for the advancement of Indonesia’s palm oil sector,” she said.She added that adopting circular practices could deliver environmental and economic benefits by reducing waste while creating new revenue streams from byproducts.Beyond economic and environmental gains, the model could also generate social benefits by involving communities near plantations and processing facilities in waste-based production activities.“If companies do not process everything internally, they can involve local communities, which would create positive impacts for those living around palm oil plantations,” she said.