BRIN Promotes Palm Oil Innovation and Downstream Development for a Green National Economy
- STIC CEGIR
- 14 hours ago
- 2 min read
The National Research and Innovation Agency (BRIN) has reaffirmed its commitment to strengthening research and innovation in the palm oil sector as part of Indonesia’s sustainable development strategy. During the Indonesia Palm Oil Research & Innovation Conference & Expo (IPORICE) 2025, the Head of BRIN’s Research Center for Industrial, Service, and Trade Economics, Umi Mu’awanah, emphasized the importance of collaboration between industry, policy, and technology to address strategic challenges across the palm oil value chain. Tungkot Sipayung, Executive Director of the Palm Oil Agribusiness Strategic Policy Institute (PASPI), highlighted that research and innovation play a crucial role in enhancing the palm oil industry’s contribution to Indonesia’s green economy. He explained that the green economy concept integrates social and environmental aspects into production systems, unlike traditional sustainability frameworks. Tungkot further noted that Indonesia’s palm oil plantations have long applied economic, social, and environmental functions in an integrated manner, aligning with the multifunctionality principle outlined in Indonesia’s Plantation Law.
Beyond producing vegetable oil, the palm oil sector holds vast potential in biomass utilization, generating around 16 tons of dry matter per hectare annually—four times the output of palm oil itself. However, only about 30% of Indonesia’s biomass potential has been utilized. Research and innovation, therefore, are key to maximizing this opportunity. Tungkot also stressed that palm oil exports and biodiesel programs have helped sustain the national trade balance, create employment, and reduce poverty. Environmentally, palm oil demonstrates higher efficiency in carbon absorption and water use compared to other vegetable oils. Moving forward, BRIN and various stakeholders are promoting palm oil downstreaming to develop derivative products such as bioplastics and green petrochemicals, thereby reinforcing the role of palm oil in replacing fossil-based materials and strengthening Indonesia’s positive and competitive global palm oil brand.
