PALMOILMAGAZINE, JAKARTA – Indonesia’s Plantation Fund Management Agency (BPDP) is strengthening the growth of small and medium-sized enterprises (SMEs) based on plantation commodities by promoting innovation, downstream processing, and cross-sector collaboration. The initiative aims to create more value-added products from palm oil, cocoa, and coconut, enabling Indonesian SMEs to compete more effectively in both domestic and international markets.
Helmi Muhansyah, Head of BPDP’s Community Partnership and SME Division, said Indonesia possesses enormous potential from its plantation commodities, which are still largely marketed as raw materials. Through downstream processing, these resources can be transformed into innovative products that generate higher economic value for farmers and local businesses.
“We want farmers to move beyond selling raw materials and instead create higher-value products through SMEs based on palm oil, cocoa, and coconut,” Helmi said, as quoted by Palmoilmagazine.com from a BPDP podcast on Monday (July 27).
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According to Helmi, BPDP is also accelerating the commercialization of research outcomes so they can be adopted by SMEs. One example is the conversion of empty oil palm fruit bunches (EFB) into safety helmets, demonstrating how plantation by-products can be transformed into commercially valuable products.
He added that the concept of helping SMEs “move up the value chain” extends beyond increasing revenue or business assets. It also involves improving business management while encouraging entrepreneurs to promote the positive contributions of Indonesia’s plantation commodities, particularly palm oil.
To support this transformation, BPDP organizes technical workshops with universities and industry experts, provides promotional opportunities through its SME House (Rumah UMKM BPDP), facilitates exhibitions and business matching programs, and offers export mentoring. Selected products are also curated and featured in BPDP’s official SME catalog.
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During the podcast, Afdhal Aliasar, founder of Minang Kakao, shared how his company evolved from a concern over underutilized cocoa trees in West Sumatra into an internationally recognized premium chocolate brand. By improving farming practices, introducing superior planting materials, and investing in downstream processing, Minang Kakao has successfully positioned itself among Indonesia’s leading artisan chocolate producers.
“Don’t stop at selling cocoa beans. The greatest value is created when cocoa is processed into high-quality chocolate products,” Afdhal said.
He emphasized that downstream processing is essential for improving farmers’ livelihoods because producing finished chocolate products generates significantly greater returns than selling dried cocoa beans alone. Thanks to this approach, Minang Kakao earned a place among the 50 Best Cocoa in the World, highlighting Indonesia’s ability to compete in the premium global cocoa market.
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Helmi expressed hope that Minang Kakao’s success would inspire more entrepreneurs to develop value-added businesses based on palm oil, cocoa, and coconut across Indonesia.
“BPDP aims to nurture more SMEs in palm oil, cocoa, and coconut that can create added value and compete in global markets,” he said.
Beyond SME development, BPDP is also investing in the next generation of plantation professionals through its Palm Oil Human Resources Scholarship Program, which provides thousands of young Indonesians with educational opportunities in plantation-related fields. The program is designed to produce skilled professionals capable of advancing Indonesia’s plantation sector through innovation, technology, and sustainability.
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Through continued collaboration among government, businesses, academia, and local communities, BPDP believes that downstream development of palm oil, cocoa, and coconut will strengthen the competitiveness of Indonesian SMEs while creating greater value for the national economy. (P3)
