BPDP Says Palm Oil Derivatives Add Value for MSMEs
Jakarta (ANTARA) — Micro, small and medium-sized enterprises (MSMEs) are seen as having opportunities to produce creative, high-value goods from palm oil and its derivatives.
Helmi Muhansyah, head of the Community and MSME Cooperation Division at the Palm Oil Plantation Fund Management Agency (BPDP), said there were 200 types of palm oil derivatives that could serve as primary or secondary raw materials for products ranging from food and handicrafts to batik.
Palm oil, he added in a statement issued in Jakarta on Saturday, is one of Indonesia’s strategic commodities and plays a role in driving the economy, including the MSME sector.
“That is why MSMEs can continue to innovate, expand their markets and create broader economic opportunities,” he said at the 2026 Palm Oil Journalists and MSMEs Week in Malang, East Java, themed “Telling the Story of Good Palm Oil with the Media and MSMEs”.
The event, supported by BPDP, brought together journalists and MSME owners and introduced the potential of palm oil derivatives to support local business development.
Palm oil derivatives include cooking oil, margarine, creamer and cocoa butter substitute, as well as biodiesel, which can be used by industry and MSMEs, Helmi said.
“Using palm-based materials gives MSMEs opportunities to develop innovative products with added value,” he said.
Helmi also said palm oil was a key pillar of Indonesia’s macroeconomic fundamentals, accounting for 9 per cent of the country’s total non-oil and gas exports. He described it as a main driver of energy downstreaming and a source of employment for millions of people.
Markus Susanto, chairman of the Indonesian Oleochemical Producers Association (Apolin), said many small-business products used oleochemicals derived from palm oil, such as fatty acids, soap noodles and glycerine.
Many everyday products used from morning until night contain oleochemicals, including soap, cosmetics, shampoo, detergents and personal-care products, he said.
“Currently, oleochemical products account for nearly 70 per cent of the export market, while 30 per cent is used to meet domestic demand. Their contribution to export earnings is between US$5 billion and US$6 billion a year,” he said.
Prof Susinggih Wijana, a professor in the Department of Agricultural Industrial Technology at Brawijaya University, said palm oil by-products, including waste, presented opportunities for MSMEs to process them into new products. Reusing palm oil waste, he said, was also part of the circular economy.
He said MSMEs could use palm oil waste to make animal feed, from production through to distribution. Small and medium-sized businesses could also produce soap on a small to medium scale using palm oil derivatives.
Qayuum Amri, editor-in-chief of Sawit Indonesia magazine, said the media and MSMEs could work together to extend the reach of MSME products and improve public understanding of palm oil’s benefits.
“We hope we can support one another and grow together, both MSME owners and our media colleagues,” he said.