Indonesian Palm Oil News (IPO News), Jakarta — President Prabowo Subianto has once again highlighted the enormous potential of Indonesia’s palm oil industry. Speaking at the Thanksgiving Reception commemorating the 100th anniversary of Pondok Modern Darussalam Gontor in Ponorogo, East Java, on Saturday, September 19, 2026, the President described palm oil as “the miracle plant” and “the miracle crop” because it can be processed into a wide range of value added products.
The President said Indonesian palm oil has 57 derivative products, ranging from fuel to various industrial products, “From palm oil, we can obtain 57 derivatives. We can produce medicine, soap, and many other products, especially fuel,” the President said in his remarks at Gontor.
The statement highlights the increasingly strategic position of palm oil not only as a plantation and export commodity, but also as a raw material for downstream industries and a source of national energy.
Palm Oil for Energy Independence
The President also highlighted the use of palm oil as a feedstock for biodiesel. The government has stated that, since July 1, 2026, Indonesia has stopped importing diesel fuel, supported by the increasing utilization of palm-based biofuel.
The biodiesel program is one of the government’s measures to reduce dependence on imported fuel while maximizing domestic resources. The government is also preparing the development of B50 and E50 as part of its broader agenda toward national energy independence.
According to data from Indonesian Palm Oil News (IPO NEWS), these developments are expanding the strategic role of palm oil, as the commodity is no longer limited to food products and exports but is also increasingly supporting Indonesia’s domestic energy needs.
Downstreaming Creates Greater Value
The vast potential of palm oil derivatives opens opportunities for further downstream development, covering food products, oleochemicals, biodiesel, cosmetics, household products and various industrial applications. The more palm oil is processed domestically, the greater the opportunity to create additional value, attract investment, generate employment and strengthen economic activity.
For businesses, this creates opportunities not only for plantation companies and CPO producers, but also for oleochemical manufacturers, biodiesel producers, processing technology companies and various supporting industries.
Palm Oil Becomes Increasingly Strategic
According to Indonesian Palm Oil News (IPO NEWS), the strength of Indonesia’s palm oil industry lies not only in its large plantation base, but also in its extensive value chain stretching from upstream plantations to downstream industries.
Therefore, the challenge ahead is not merely to increase production, but also to strengthen research, technology and investment so that more high-value products can be produced domestically.
President Prabowo’s statement at Gontor serves as a reminder of the enormous development opportunities surrounding palm oil. From being a major plantation commodity, palm oil is increasingly positioned as a strategic asset for downstream industrial development and Indonesia’s energy independence.
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