JAKARTA – Palm kernel shells are considered to have significant potential as a raw material for Indonesia to develop its own activated carbon industry.
Besides utilizing abundant supply of biomass waste, the palm kernel shell-based activated carbon products offer competitive financial prospects amidst rising domestic market demand. These products can reduce reliance on imports and attract investor interest due to their positive economic outlook.
Those issues were discussed during the 9th Dissemination Series webinar organized by the National Research and Innovation Agency (BRIN) on Wednesday (24/06/2026). Participants of the webinar also talked about the financial feasibility of activated carbon industries using coal and palm kernel shells as raw materials.
In his presentation, Wawan Irawan from CV Pehakarsa Multitek Engineering explained that the study compared activated carbon plants based on coal and palm kernel shells, each with a raw material processing capacity of 25,000 tons per year.
The active carbon industry produces a highly porous form of carbon used to remove impurities, odors, and contaminants from liquids and gases. It drives global purification, acting as the foundation for drinking water filtration, air pollution control, industrial chemical processing, waste treatment and a variety of other industrial processes.
He noted that the analysis focused on comparing initial investment requirements (capital expenditure/CAPEX), operational costs (operational expenditure/OPEX), and potential profits for these two commodities, which are key assets for Indonesia.
Wawan explained that although the raw material capacities are identical, the volume of activated carbon produced differs due to the distinct physical and chemical characteristics of each material.
Low- to medium-rank coal offers advantages such as a relatively stable year-round supply and high fixed carbon content.
On the other hand, palm kernel shells offer added value as a renewable biomass source; their natural pore structure enhances the quality of the resulting activated carbon, although raw material prices tend to fluctuate based on regional market dynamics.
According to a report published on the BRIN website on Monday (29/06/2026), coal-based plants require additional investment in facilities such as combustion reactors, raw material preparation units, material handling systems, and sulfur emission controls. Conversely, industries utilizing palm kernel shells require larger storage areas due to the lower density characteristic of biomass.
Regarding operations, energy consumption efficiency is a key factor influencing production costs. Coal carbonization is considered more energy-efficient as it utilizes volatile matter content as an internal fuel source, whereas the activation process for palm kernel shells requires a higher energy input.
Nevertheless, Wawan emphasized that investment success is not determined solely by raw material prices. “At an industrial capacity of 25,000 tons of raw material per year, achieving the break-even point depends more on the consistency of the calorific value during production and the activated carbon yield rate meeting market specifications,” he explained.
The study also evaluated several financial indicators—such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period—to serve as a basis for consideration by prospective investors.
Analysis results indicate that both coal-based and palm kernel shell-based activated carbon offer promising investment prospects in the domestic market. Local products are considered competitive, as they reduce reliance on imports while simultaneously lowering logistics costs.
Driving Down-streaming
Meanwhile, David Candra Birawidha, a Senior Researcher at BRIN’s Research Center for Mineral Technology (PRTM), emphasized that BRIN continues to drive the down-streaming of research outcomes so they can be directly utilized by the industrial sector.
According to him, collaboration between research institutions and engineering and manufacturing players is a strategic step toward accelerating the commercialization of mineral technology innovations in Indonesia.
“Through techno-economic studies like this, we aim to ensure that every innovation and process design produced by BRIN researchers rests on a strong, competitive economic foundation and is ready for implementation by the national industry,” said David.
BRIN hopes the study results will serve as a reference for investors and industry players in developing the national activated carbon industry—including by leveraging the potential of palm kernel shells as high-value-added raw material—thereby supporting the circular economy and the down-streaming of the plantation sector. (*)
Sawitku.id. BRIN Sebut Industri Karbon Aktif Berbahan Sawit Berpeluang Tekan Impor dan Tarik Investor. 26 Juni 2026. https://www.sawitku.id/ekbis/81417294883/brin-sebut-industri-karbon-aktif-berbahan-sawit-berpeluang-tekan-impor-dan-tarik-investor
