Gen-Z Targeted as New Engine for Palm-Based SMEs
Generation Z is being targeted to become the new driving force behind the development of palm-based small and medium enterprises (SMEs) in Indonesia. This opportunity is wide open because Indonesia remains the world’s largest palm oil producer, with hundreds of derivative products that can be developed into creative, value-added businesses.
This was highlighted at the Gen-Z Preneur Workshop for Palm SMEs themed “Plantation Entrepreneurship and Oleofood Initiatives” at AKPY-STIPER in Sleman, Special Region of Yogyakarta, on Tuesday (12/5/2026). The event was a collaboration between Sawit Indonesia Magazine, supported by the Plantation Fund Management Agency (BPDP), the Indonesian Palm Oil Entrepreneurs Association (GAPKI), and AKPY-STIPER.
Dr Purwadi, Chairman of the Board of the Yogyakarta Plantation Cadre Education Foundation (YPKPY), stated that the younger generation plays a crucial role in ensuring the sustainability of the national palm oil industry in the future. According to him, Indonesia is still a major player in the global palm oil industry, both in terms of production, exports, and consumption.
“Indonesia has the world’s largest palm plantation area, is the biggest exporter, and also the largest consumer. Palm oil is Indonesia’s flagship commodity in various aspects,” said Purwadi in his opening remarks, quoted on Wednesday (13/5/2026).
He explained that globally, palm land covers only about six percent of the total area of oilseed crops worldwide. Nevertheless, palm oil is considered superior due to its hundreds of derivative products used in everyday life.
Purwadi mentioned that palm-based products are used from household needs to food and cosmetics. This condition makes palm oil one of the national strategic commodities with vast downstreaming opportunities.
Workshop Executive Chairman Qayuum Amri said the event was designed to introduce the potential of palm oil businesses to the younger generation, including hands-on practices in making oleofood products based on palm oil. On the second day, participants are scheduled to attend a practical session on making sweet bread and churros at the INSTIPER Bakery Academy as part of introducing innovations in palm-based food products.
“We want to attract Gen Z’s interest to become successors in sustaining palm oil in the future. Students will be directly involved in learning to make palm-based oleofood products,” said Qayuum.
According to him, the palm oil industry has great potential because it has more than 170 derivative products that can be developed into new business opportunities. Yogyakarta was chosen as the event location because it is considered strategic as one of the nation’s main tourism destinations.
Based on domestic tourist travel data, the number of visits to DIY from January to November 2025 reached 36.72 million trips. This condition is seen as opening up a large market opportunity for the development of creative palm-based SME products.
Deputy for Medium Enterprises at the Ministry of Cooperatives and SMEs, Bagus Rachman, also appreciated the organisation of the workshop. He considered the event strategic in encouraging the emergence of young palm oil entrepreneurs who are adaptive and collaborative.
“This event is very inspiring. Highest appreciation to Sawit Indonesia Magazine, BPDP, and AKPY-STIPER. This theme is very strategic in encouraging Gen-Z to be adaptive and collaborative in optimising palm oil sustainably,” said Bagus in a speech read by Assistant Deputy for Production and Digitalisation of Medium Enterprises at the Ministry of Cooperatives and SMEs, Refani Anwar Azis.
Bagus said that palm-based SMEs have great potential for development, ranging from crafts, oleofood, energy, to food sectors. The government is also encouraging the younger generation to produce palm oil products with global competitiveness.
Head of the Community Cooperation and SME Division at BPDP, Helmi Muhansah, said that BPDP has various programmes that young people can utilise to get involved in the national palm oil industry development. BPDP is also pushing for the emergence of more palm-based SME actors.