Indonesia targets palm oil waste for 3.9 GW electricity potential

The National Research and Innovation Agency (BRIN) has identified a significant energy potential in Indonesia's palm oil industry. Head of BRIN, Arif Satria, reported to President Prabowo Subianto that liquid and solid waste from palm oil mills, specifically Palm Oil Mill Effluent (POME) and empty fruit bunches, could potentially generate up to 3.9 gigawatts of electricity through biogas technology.

This waste-to-energy initiative aims to support the national energy transition and provide a solution to reduce the country's heavy reliance on LPG imports, which currently cost approximately Rp97 trillion annually. By converting biogas into bottled gas, the government hopes to create a circular economy within the palm oil sector.

In a separate strategic move, the Indonesian government is focusing on strengthening the palm oil sector's downstreaming and upstreaming capabilities. The Ministry of Cooperatives plans to empower smallholder farmers by encouraging cooperatives to enter the processing industry, including the establishment of palm oil mills and refineries to ensure greater economic benefits remain with local producers.