In 2023, Indonesia’s palm oil industry contributed over Rp750 trillion to the economy, making up about 3.5% of GDP. The sector plays a key role in economic growth and is pivotal in the nation’s efforts to reach net zero emissions (NZE) by 2050.
A major initiative involves transforming waste, like oil palm empty fruit bunches (EFB), into valuable products through enzymatic technology. This innovation enables the production of bioethanol, organic acids, and chemicals, reducing imports and supporting sustainable industrialization. A pilot plant, inaugurated in 2024, processes 1 ton of biomass daily, producing glucose, xylose, and lignin for diverse applications.
These advancements align with Indonesia’s Golden Palm Oil 2045 Roadmap, promoting green technologies and reduced reliance on fossil fuels. As the world’s largest palm oil producer, Indonesia aims to lead in eco-friendly innovations, minimizing carbon emissions and enhancing national self-suffiency in bio-based products. With government support and strict environmental standards, Indonesia’s palm oil industry is set to be a global leader in sustainability, benefiting both the economy and the environment.
Source: Ratna Puspa Merdika (2024), ‘Industrializing Palm Oil for a Greener Economy’, Indonesia.go.id, 30 September Available at: