BPDP: Palm Oil Production Edge Must Be Matched by Downstream Innovation and R&D
The Palm Oil Plantation Fund Management Agency (BPDP) has stated that Indonesia’s production edge in palm oil must be accompanied by an increase in downstream added value, as well as the development of technology and human resources (HR) within the ecosystem. “Indonesia should be grateful to be the world’s largest palm oil producer. However, we must not stop here. Production advantages must be followed by advantages in innovation, technology, HR, and in creating added value,” said BPDP President Director Eddy Abdurrachman in Jakarta on Monday.
Eddy said development in these sectors is crucial given the world’s highly dynamic changing needs, including climate change, sustainability demands, digitalisation, artificial intelligence, the bioeconomy, the circular economy, and global trade dynamics. He continued that this demands the Indonesian palm oil industry to continuously transform, which can only be realised if the nation also possesses a strong research ecosystem as a strategic investment.
According to Eddy, research and downstreaming efforts are closely linked to increasing national palm oil productivity, particularly for smallholder plantations which still have vast room for development. “When talking about downstreaming, public attention is often focused solely on biodiesel or biofuel development. In fact, biodiesel is only one part of the palm oil downstream ecosystem,” Eddy said.
He stated that research into palm oil derivative products plays a decisive role, and every innovation will give birth to new products, just as every new product will open up new industries. “Every new industry will create investment, jobs, and economic growth,” Eddy remarked. “Therefore, downstreaming and research are two sides of the same coin. There is no strong downstreaming without innovation. However, there is also no meaningful innovation if it does not reach the downstreaming stage,” he added.
Meanwhile, BPDP is showcasing various sustainable palm oil management innovations for the food and energy sectors at the 2026 Indonesian Palm Oil Research Week (PERISAI), held on 20-21 July in Jakarta. The event also features various seminars, discussions, research exhibitions, business matching, innovation competitions, and collaboration forums involving researchers, academics, business players, the government, and students. Furthermore, the activity will display various research results in six main fields: bioenergy; environment; biomaterials; cultivation and post-harvest; food and health; and social, economic, management, market, and information technology.