President Prabowo Subianto says Indonesia’s oil palm industry can support energy self-sufficiency through domestic fuel production while providing raw materials for dozens of downstream products.
PALMOILMAGAZINE, JAKARTA — President Prabowo Subianto has highlighted the strategic role of oil palm in supporting Indonesia’s energy security and downstream industries, describing the crop as a “miracle plant” because it can be processed into a wide range of products, including fuel.
Prabowo made the remarks during the 100th anniversary thanksgiving reception of Pondok Modern Darussalam Gontor in Ponorogo, East Java, on Saturday (Sept. 19, 2026).
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Speaking about Indonesia’s drive for energy self-sufficiency, Prabowo said the country was fortunate to have natural resources that could be developed into domestic energy sources.
“Alhamdulillah, we can now produce diesel from oil palm,” Prabowo said in his speech.
He said oil palm had applications extending well beyond vegetable oil and could be processed into numerous downstream products.
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“Oil palm may be a miracle plant, the miracle plant, the miracle crop. From oil palm we can get 57 derivatives. We can get medicine, we can get soap, we can get all kinds of things, especially fuel,” Prabowo said.
Oil Palm and Energy Self-Sufficiency
Prabowo linked the development of oil palm-based fuel to Indonesia’s broader push for energy self-sufficiency and reduced reliance on imported fuel.
The government has expanded the use of palm oil-based biodiesel as a way to increase domestic consumption of palm oil while reducing dependence on fossil-fuel imports. The President said Indonesia had stopped importing diesel from July 1, 2026, citing the country’s ability to meet diesel demand through domestic production.
Prabowo also said Indonesian engineering faculties had developed technology to produce both diesel and gasoline from oil palm.
“From our engineering faculties, we have succeeded in making diesel from oil palm and have also been able to make gasoline from oil palm,” he said.
He separately mentioned plans to develop gasoline from coal as another component of Indonesia’s domestic energy strategy.
Also Read: Prabowo Launches B50 Biodiesel, Declares Indonesia First Nation to Mandate 50% Palm-Based Fuel Blend
The remarks come as Indonesia is implementing higher palm oil-based biodiesel blending, with the government positioning domestic palm oil as an important feedstock for the country’s energy transition.
Expanding Palm Oil Downstream Industries
Beyond energy, Prabowo’s comments point to the government’s broader emphasis on downstream processing to increase the value generated from Indonesia’s natural resources.
Oil palm already serves as a feedstock for a wide range of industries, including food, oleochemicals, personal care products and biofuels. Further development of downstream processing could expand the domestic market for palm oil while diversifying the industry beyond exports of crude and refined products.
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The President also emphasized the importance of developing Indonesia’s natural resources through technology and human capital rather than relying primarily on exports of raw materials.
At the Gontor event, Prabowo framed food and energy self-sufficiency as part of Indonesia’s broader effort to strengthen economic independence amid global uncertainty. The President said Indonesia should be able to meet its basic needs using its own resources and capabilities.
For the palm oil industry, the remarks reinforce the government’s positioning of the commodity not only as an agricultural and export product, but also as a strategic feedstock for Indonesia’s energy and downstream industrial development. (P2)
