Head of Bappenas says palm oil downstreaming must focus on innovative products

Palm oil downstreaming must no longer rely solely on raw material exports but should focus on developing innovative, technology- and research-based products. National Development Planning Agency (Bappenas) Head Rachmat Pambudy stated that palm oil downstreaming should be directed towards innovative product development. “Palm oil downstreaming can no longer depend on raw material exports alone; it must shift to developing innovative, technology- and research-based products,” he said during a meeting with a delegation from Bogor Agricultural Institute (IPB) led by IPB Faculty of Agriculture Professor Sudrajat. He noted that palm oil can yield high-value products such as natural lipstick, beta-carotene capsules, composite materials, and other industrial goods. Palm oil is considered an exotic commodity when processed with scientific and technological advancements. Therefore, he wants IPB’s palm oil research centre to continue and be strengthened, even starting small, as its impact would be monumental. “Collaboration between universities, government, and industry is key to ensuring palm oil development directly benefits society,” Rachmat said. “We all received direct instructions from the President. Specifically for palm oil, at least three institutions were tasked: the ministries handling land and higher education, Agrinas (PT Agro Industri Nasional (Persero)), and myself as Bappenas Head, as we are responsible for palm oil downstreaming. This is where IPB must engage and take a strategic role,” he added. Meanwhile, Professor Sudrajat explained that IPB is preparing various collaboration schemes for palm oil plantation management and developing a sustainable palm oil industry-based education ecosystem. “One option being considered is professional plantation management involving experienced industry practitioners, while integrating these activities with education, research, and community service,” he said.