Gen Z Encouraged to Enter Palm Oil Downstream Industry via Entrepreneurship
The Indonesian Oil Palm Plantation Fund Management Agency (BPDPKS) is encouraging the younger generation to enter the palm oil downstream industry through entrepreneurship. This initiative was highlighted during the Gen-Z Preneur Palm Oil MSME Workshop, titled ‘Plantation and Oleofood Entrepreneurship Startup’, held in Karawang, West Java, on 4-5 June 2026.
Helmi Muhansyah, Head of the Community Cooperation and MSME Division at BPDPKS, stated that the palm oil industry offers more than just employment opportunities; it provides a platform for young people to build businesses based on value-added palm oil derivatives. He noted that BPDPKS is driving the emergence of young palm oil entrepreneurs by strengthening human resources, research, innovation, and product downstreaming, given the vast potential of the industry to produce diverseisable products.
“This programme is part of our effort to build superior palm oil human resources. Scholarship recipients receive not only tuition fees but also a living allowance during their period of study,” Hellam said in a statement on Thursday (4/6/2026).
He explained that BPDPKS is currently offering opportunities for approximately 5,000 prospective students to participate in the palm oil scholarship programme, which covers both educational costs and living expenses. Opportunities for the youth extend beyond education into the development of businesses based on palm oil derivatives. Various research results supported by BPDPKS have produced value-added products that can be developed into commercial ventures.
“We have many research results based on palm oil, ranging from materials for bulletproof vests and helmets to various consumer products. Some of these research results have been commercialised by MSMEs. The BPDPKS website also features around 100 MSMEs based on palm oil derivatives that can serve as inspiration for the younger generation,” he added.
According to Helmi, several young people have successfully capitalised on these opportunities, including a student from West Sumatra who developed a business based on palm oil leaf midribs that has successfully penetrated the South Asian export market. BPDPKS hopes more young people will view the palm oil industry as a space for innovation and business building, as downstreaming opens wide opportunities in industrial products, crafts, food, and daily consumer needs.
Qayuum Amri, the Chairperson of the Gen-Z Preneur Palm Oil MSME Workshop, stated that the activity aims to provide a more comprehensive understanding of the palm oil industry to the youth. He noted that Generation Z has largely been exposed to negative information regarding palm oil via social media, rather than the available economic opportunities.
“So far, Gen Z has received more negative information about palm oil through social media. In reality, palm oil has many benefits and economic potential that can be developed by MSMEs and young entrepreneurs,” he remarked.
Qayuum assessed that Karawang is an ideal location to encourage the growth of young palm oil-based entrepreneurs. Although not a palm oil-producing region, Karawang possesses a strong industrial ecosystem with over a thousand national and international companies operating in the area. He believes palm oil derivative products have significant potential for development by MSMEs in Karawang, given the region’s robust manufacturing and processing sectors, which can serve as capital for a new generation of entrepreneurs leveraging downstreaming opportunities.