Indonesian Palm Oil News (IPO News) – Palm kernel is another name for the kernel or seed of the oil palm fruit. The palm kernel is edible and can also be processed into palm kernel oil (PKO). There are two types of oil made from oil palms: first, the kernel or seed of the oil palm fruit, known as palm kernel oil (PKO).
The second type is derived from the flesh of oil palm fruits that have been pressed and boiled, known as crude palm oil. The production process and ingredients for palm kernel oil are the same as those for regular coconut oil.
Palm kernel oil has a wide range of benefits and uses. For example, it can be used as an ingredient in foods such as cooking oil and margarine.
Number of Palm Kernel (PK) Mills
There are quite a number of companies operating in the palm kernel industry. According to IPO News’s research, there are currently approximately 468 companies in this sector. Most of these companies are located outside the island of Java, such as in Sumatra, Kalimantan, and Sulawesi.
Typically, these palm kernel producers are integrated with other palm oil processing operations, such as the Crude Palm Oil (CPO), Palm Kernel Oil (PKO), Palm Kernel Expeller (PKE), RBD Palm Oil (Refined, Bleached, Deodorized Palm Oil), and PFAD (Palm Fatty Acid Distillate) industries, among others. In fact, many of them also operate oleochemical plants that produce fatty acids, fatty alcohols, glycerin, methyl esters, and so on.
Palm Kernel Producers and Their Production, 2025
| NO | COMPANY NAME | LOCATION | PRODUCTION CAPACITY |
| 1 | Abadi Jaya, PT | Bandar Lampung, Lampung | Palm Kernel (PK) |
| 2 | Aburahmi, PT | Palembang, South Sumatera | Palm Kernel (PK) – 6,250 tons p.a |
| 3 | Adei Plantation And Industry, PT | Pekanbaru, Riau | Palm Kernel (PK) – 14,400 tons p.a |
| 4 | Adikarya Gemilang, PT | South Sumatera | Palm Kernel (PK) |
| 5 | Adimulia Agrolestari, PT | Medan, North Sumatera | Palm Kernel (PK) – 6,400 tons p.a |
| 6 | Aditya Agroindo, PT | West Kalimantan | Palm Kernel (PK) – 15,400 tons p.a |
| 7 | Aditya Palma Nusantara, PT | Kab. Rokan Hulu , Riau | Palm Kernel (PK) – 8,000 tons p.a |
| 8 | Aek Tarum, PT | Palembang, South Sumatera | Palm Kernel (PK) – 14.070 tons p.a |
| 9 | Agra Nusantara Agri, PT | Medan, North Sumatera | Palm Kernel (PK) – 5,000 MT p.a |
| 10 | Agra Para Citra, PT | Medan, North Sumatera | Palm Kernel (PK) – 19,300 tons p.a. |
Until now, there has been no official record of the total palm kernel production. However, to estimate it, palm kernel production can be calculated from the output of oil palm processing. Palm kernel production is calculated by determining the volume of Fresh Fruit Bunches (FFB) production and multiplying it by the kernel extraction rate per ton of FFB, or by conducting direct loss analysis at palm oil mills.
The extraction rate represents the percentage of kernel obtained from each ton of FFB. In Indonesia, for the commonly cultivated oil palm varieties, it is estimated that around 190–250 kg of kernel is produced per ton of FFB. With this level of extraction rate, it can be estimated that palm kernel production in Indonesia in 2021 reached approximately.
Development of Palm Kernel Production in Indonesia 2021 – 2025
| Year | FFB Production | Palm Kernel Production | Growth (%) |
| 2021 | 225,607,400 | 49,633,628 | – |
| 2022 | 234,098,365 | 51,501,640 | 3.76 |
| 2023 | 234,930,640 | 51,684,740 | 0.36 |
| 2024 | 238,473,200 | 52,464,104 | 1.51 |
| 2025 | 243,088,245 | 53,479,413 | 1.40 |
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This article can be found in the March–April 2026 issue of IPO News Magazine
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