Palm oil industry is not just about cooking oil. More than that, it has big potential to support various economic sectors, which include foods and beverages, energy, cosmetics, pharmaceuticals, cleaning and personal care, and biomaterial. The infographic from the Palm Oil Agribusiness Strategic Policy Institute (PASPI) and the Oil Palm Plantation Fund Management Board (BPDPKS) show that there are four main lines of palm oil down-streaming to process all parts of the oil palm trees into products of high added value.
- Olefood Complex: From fruit bunches to dining table
Crude palm oil (CPO) and crude palm kernel oil (CPKO) become main raw material for various food products. This line of down-streaming produces:
- Cooking oil
- Margarine and shortening
- Bread, chocolate, biscuits/snacks, vegetable creamer, instant noodles, and other processed foods.
Palm oil also has important compounds such as vitamin A (beta-carotene), vitamin E, squalene, and ubiquinone, which are used in pharmaceutical industry.
- Oleochemical Complex: Beautifying and Cleaning
Palm oil is also raw material to produce various chemical products for households and personal care:
- Biosurfactant: Used in soap, detergent, shampoo, and conditioner
- Cosmetics: such as make-up and skincare
- Bio-lubricant, colouring agent and paint
- Bioplastic: Ecofriendly solution that is increasingly preferred.
- Biofuel/Bioenergy Complex: Energy from palm oil for the future
Palm oil plays an important role in energy transition from fossil fuels to renewable energy sources. Palm oil can be used to produce a number of bioenergy products, which include:
- Biodiesel and Green Diesel
- Green Gasoline
- Sustainable Aviation Fuel
All of these products reduce reliance on use of fossil fuels and support target of decarbonization.
- Biomass-Biomaterial Complex: Waste Utilization
Not only palm oil, the palm biomass, such as empty fruit bunches, midribs, trunks, palm kernel shells and palm kernel meal can be processed into:
. Animal Feeds
- Palm brown sugar
- Bioplastic and bioethanol
- Bio-coal and biochar
- Organic fertilizer/compost
- Craft products and wooden furniture
By using the biomass, the palm oil industries drive circular economy and reduce wastes.
So, there is no part of oil palm trees wasted. From fruits to midribs, all parts can be processed into products of high added value. Optimum down-streaming will not only increase the competitiveness of palm oil, but also create new job opportunities, increase farmers’ income, and push up innovations of green technologies. (*)
Palmoilina.asia. https://palmoilina.asia/jurnal-kelapa-sawit/sawit-dan-ekonomi-nasional/. Empat Jalur Hilirisasi Sawit (2025). Juni 3, 2025
