PALMOILMAGAZINE, JAKARTA — The Indonesian Ministry of Industry (Kemenperin) is intensifying efforts to develop the downstream palm oil industry by promoting the use of oil palm trunks as value-added commodities. One key initiative includes facilitating the signing of a Cooperation Agreement (PKS) between PalmCo/PTPN IV and the Gerak Nusantara Producers Cooperative (KPGN).
The agreement was formalized at the Adolina Palm Oil Mill in Serdang Bedagai, North Sumatra, on Thursday, April 10, 2025. The event was also attended by leaders and members of Commission VII of the Indonesian Parliament (DPR RI), who were on a working visit to the region.
“This PKS follows the Memorandum of Understanding (MoU) previously signed between the Ministry of Industry, PalmCo, and KPGN,” said Putu Juli Ardika, Director General of Agro Industry at the Ministry, in a statement received by Palmoilmagazine.com on Tuesday, April 15, 2025.
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Putu explained that oil palm trunks, previously regarded as waste from replanting programs, are now seen as a new economic opportunity. These trunks contain sap rich in sugar, which can be processed into high-quality palm sugar.
“In palm-producing areas like Serdang Bedagai, the number of palm sap artisans is growing steadily. This trend highlights an economic potential that can be harnessed by farmers, especially during the replanting phase,” he noted.
To help palm sugar production scale up within small and medium industries (SMEs), Putu emphasized the need to strengthen farmer management—from production and human resources to marketing. He also stressed the importance of mentorship from experienced artisans to ensure consistent product quality and quantity.
He encouraged the formation of institutions that connect farmers with palm sap processors, enabling more efficient and sustainable supply chains. “This partnership model will accelerate the development of locally-based downstream palm industries,” he added.
An investment of approximately IDR 25 million (about USD 1,600) is estimated to be needed for each hectare to process palm sap, covering basic equipment. A single oil palm tree can yield an average of 6.8 liters of sap per day, with a tapping period of 1.5 to 2 months.
“If processed independently, farmers can earn a net profit ranging from IDR 18 million to IDR 25 million,” said Putu, citing results from surveys of local palm sap artisans. (P2)
