Indonesia is intensifying its efforts to transform palm oil waste into profitable export commodities by focusing on palm fronds and nipah leaves as emerging high-value products. According to data from the Badan Pusat Statistik and the Lembaga Pembiayaan Ekspor Indonesia, the export value of these waste-based materials rose by 11.44% in 2023, reaching USD 29.32 million compared to USD 26.31 million the year prior. However, exports in the first half of 2024 dropped by 27.59% to USD 10.18 million, affected by declining demand from major markets such as India, Japan, and China. Despite this setback, positive momentum is emerging from countries like Pakistan, the Philippines, and Vietnam, which are showing increased interest in Indonesian palm frond exports.
To capitalize on this potential, the Badan Pengelola Dana Perkebunan (BPDP) has engaged with key stakeholders, including palm, coconut and cocoa farmers, to strengthen supply chains and promote innovation in waste-based product development. A case in point: in Yogyakarta, small-scale artisans significantly boosted their turnover after receiving support and promotion via BPDP, illustrating how palm frond waste can become an economic resource rather than mere residue. Training programmes held in Bengkalis, Riau, familiarized 80 farmers with how to process palm fronds into export-ready items, animal feed, and eco-friendly biochar. Local officials view this shift as not only adding economic value and creating jobs, but also contributing to sustainable regional development.
