BPDP and ASPEKPIR Launch First Export of 28 Tonnes of Palm Frond Sticks to China

The Palm Oil Plantation Fund Management Agency (BPDP) and the Indonesian Smallholder Palm Oil Farmers Association (ASPEKPIR) dispatched the first export of 28 tonnes of palm frond sticks to China from a warehouse in Belawan, Medan, North Sumatra, on Wednesday (17/6/2026). The palm frond sticks originated from oil palm plantations in Riau, North Sumatra, and Aceh provinces. The products were collected and processed by smallholder farmers, micro, small, and medium enterprises (MSMEs), and cooperatives that are members of ASPEKPIR through an empowerment programme run jointly with BPDP. ASPEKPIR Chairman Setiyono stated that this inaugural export is a follow-up to various MSME empowerment programmes implemented by ASPEKPIR and BPDP in several regions, including Riau and North Sumatra. “This first export proves that palm frond sticks, which were previously underutilised, have high economic value. We hope more smallholders will be interested in making the collection and processing of palm frond sticks an additional source of income,” he said. BPDP’s Director of Law and Cooperation, in a written statement read by Anwar Sadat, noted that the agency has been promoting the added economic value of oil palm by-products and waste, including frond sticks, since 2024. Various production workshops have been held in regions such as Siak, Kampar, Bengkalis, Muaro Jambi, East Belitung, and Pasang Kayu in West Sulawesi. These activities aim to enhance farmers’ capacity and ensure product quality meets export market standards. “BPDP strongly supports and appreciates this activity because it provides direct economic benefits to the community and demonstrates that palm oil waste can be processed into high-value products,” he said. BPDP sees significant opportunities in developing palm frond sticks as export raw materials and for various craft products made by local MSMEs. Ilham Setiadi, President Director of PT Arra Setya Abadi, said his company, together with ASPEKPIR and with BPDP’s support, has been conducting socialisation and business development assistance for palm frond stick exports since late 2024. He noted that international market demand for palm frond sticks continues to rise, leaving ample opportunities for farmers and MSMEs in various palm oil-producing regions. Setiyono added that at least seven cooperatives under ASPEKPIR were involved in supplying the raw materials for the export to China, with the activity estimated to provide economic benefits to around 2,800 cooperative members. The North Sumatra Provincial Government also welcomed the inaugural export. A representative from the Provincial Agriculture and Food Security Office, Tsarwah, said North Sumatra has great potential to develop various derivative products based on oil palm waste. “Collaboration between the government, businesses, farmer organisations, and the community is the key to achieving export success like this,” he said. In addition to the export launch, BPDP and ASPEKPIR held a workshop on palm frond stick export practices in Langkat Regency, North Sumatra, on Thursday (18/6/2026). The event, attended by around 100 participants, included the signing of a memorandum of understanding between palm oil cooperatives and exporters to increase the production of export-ready palm frond sticks.