Indonesia's 2026 Palm Oil Replanting Target and Solutions for Utilizing Palm Oil Trunk Waste

Indonesia's stagnant national palm oil productivity requires an immediate solution. If this situation is not addressed promptly, Indonesian palm oil productivity will decline in the future. This is undesirable given the increasing demand for palm oil as a vegetable oil, including its use in biofuel, namely biodiesel. The launch of the B50 biodiesel program demands increased palm oil productivity. However, the question remains: why palm oil? Aren't there other crops that can produce oil with a comparable yield for biodiesel production? Nyamplung is a strong candidate for this; read more details here.

In palm oil, productivity can be increased through the use of superior seeds, replanting, and land intensification. In terms of land area, replanting palm oil plantations, with an ideal target of 5% per year, is very significant. With Indonesia's current 16.8 million hectares of oil palm plantations, that translates to 0.84 million hectares per year. Besides the high costs, the resulting biomass waste, or palm oil trunks, is also substantial. This clearly holds potential for an environmentally friendly bioeconomy-based industry, or circular economy.

With an area of Indonesia's palm oil plantations of around 16.8 million hectares, 9 million hectares are managed by private companies, 550 thousand hectares are owned by state-owned companies (PTPN), 6.1 million hectares belong to people's plantations or small farmers and the rest have not been verified. And based on data from the Central Statistics Agency (2024), recorded 10 provinces in Indonesia with the largest oil palm plantations in sequence, namely Riau province with 3.49 million ha, Central Kalimantan province with 2.03 million ha, North Sumatra province with 2.01 million ha, West Kalimantan province with 1.82 million ha, South Sumatra province with 1.40 million ha, East Kalimantan province with 1.32 million ha, Jambi province with 1.19 million ha, South Kalimantan province with 497.2 thousand ha, Aceh province with 487.5 thousand ha, and West Sumatra province with 379.6 thousand ha. And a total of 26 provinces in Indonesia as centers of palm oil plantations.

The palm oil industry, as one of the national strategic industries, receives significant government support, including the People's Palm Oil Replanting (PSR), which remains a national strategic program, although its realization has not yet reached the target. South Sumatra, as one of the national palm oil plantation centers, also recorded the highest PSR realization. PSR realization in 2025 is approximately 40,000 hectares, or 33% (one-third) of the target of 120,000 ha. This represents a slight increase compared to 2024, which was only 31% of that year's target. Specifically, South Sumatra has replanted approximately 75,000 ha of smallholder palm oil plantations from 2017 to 2025.

The government is targeting a national PSR of 50,000 ha for 2026, a much more realistic figure than in previous years, with South Sumatra province targeting 5,750 ha. However, given Indonesia's oil palm plantation area, the 2024 and 2025 targets of 120,000 ha are very low, especially for 2026, which is only 50,000 ha. Under these conditions, efforts that can be accelerated to increase national palm oil productivity are through the use of superior seeds and land intensification.

Furthermore, ganoderma can lead to the death of palm oil trees. Ganoderma, caused by the fungus Ganoderma boninense, attacks the palm oil's root system, disrupting nutrient and water transport. The process is very slow and is only detected when the infection is severe, resulting in yellowing leaves, drooping crowns, and even plant death. Waste from ganoderma-infected trunks must be removed or destroyed from the plantation to prevent further spread. Like waste from palm oil trunks from replanting, this waste must also be properly managed.

The issue of biomass waste from palm oil trees, which covers thousands of hectares, also presents a challenge. With such a large volume of old palm oil trees, utilizing them to create value-added products is crucial. With such a large volume, biomass processing plants or industries can be established and operate optimally, without worrying about raw material shortages. Products such as pellets, briquettes, and biochar are made from this waste biomass from old palm oil trunks. Old, dead palm oil trunks, often left unattended on land, should be utilized to create these useful, value-added products.

As shown in the diagram above, the potential for utilizing biomass waste, particularly oil palm trunks, is enormous. In the future, industrializing bioeconomics into various products is highly feasible. Palm oil trunk waste should not only pollute the environment and increase costs for palm oil farmers, but instead, it should become a profitable industrial raw material.

Replanting Palm Oil Plantations in Indonesia to Maintain Palm Oil Productivity and Potential Utilization of Oil Palm Trunk Biomass Waste

One way to maintain or even increase the productivity of palm oil plantations is through replanting or rejuvenation, which is absolutely necessary. Old palm oil trees will decline in productivity, making them uneconomical. In keeping with the gradual planting of palm oil trees, replanting palm oil plantations is also carried out in stages and periodically. Furthermore, the use of superior seeds is also necessary, and one way to produce superior oil palm seeds is by using high-quality planting media, such as biochar. For more details, read here.

Palm oil companies generally replant 4-5% of their total land area annually. However, smallholders generally do not replant properly. This is due to the cost of replanting and the 4-5-year waiting period for fruiting to resume. However, because old palm oil trees naturally decline in productivity even with additional fertilizer, replanting is the only solution. Of Indonesia's approximately 16.8 million hectares of palm oil plantations, 9 million hectares are managed by private companies, 550,000 hectares are owned by state-owned enterprises (PTPN), 6.1 million hectares belong to smallholders or smallholders, and the remainder has not been verified. Specifically for replanting, the government is targeting 180,000 hectares per year for smallholders, but by 2024, only 38,244 hectares had been realized, far from the target.

Even in 2025, implementation of the replanting program will remain low, reaching only 11,777 hectares in the first quarter. Based on this reality, the government has finally lowered the annual replanting target from 180,000 hectares to 120,000 hectares. To accelerate the replanting program, the government could provide additional replanting funds to smallholder farmers. This additional funding would ideally come from business profits, specifically from the utilization of palm oil waste. Various biomass-based products are produced from the processing of palm oil waste.

For businesses based on the utilization of oil palm trunks, business readiness factors, both technologically and market-specific, require careful assessment. With an average hectare of palm oil plantations containing 125 trees, each tree having an average dry weight of 0.4 tons, per hectare yields 50 tons of dry biomass. For an area of ​​10,000 hectares, this translates to 0.5 million dry tons, and for an area of ​​100,000 hectares, this translates to 5 million dry tons. Optimistically, Indonesia could achieve 5% replanting, or 820,000 hectares, which would yield 41 million dry tons of biomass per year. Malaysia, with 5% replanting, or 285,000 hectares, would yield 14.25 million dry tons per year.

The issue of biomass waste from palm oil trees, which covers thousands of hectares, also presents a unique challenge. With the vast volume of old palm oil trees, utilizing them to create value-added products is crucial. This vast volume allows biomass processing plants or industries to be established and operate optimally without worrying about raw material shortages. Products such as pellets, briquettes, and biochar are made from this old palm oil trunk biomass waste. Old palm oil trunks, which are often left abandoned on land, should be utilized to create these useful, value-added products.

For a presentation on palm oil replanting, click here.

Selling Wood Processing Machines and include Wood Waste Processing Machines

Various wood processed products are increasingly diverse and developing today. The utilization of wood is optimized for its function, especially those originating from production forests. To improve the quality and usefulness of the wood, it needs to be processed specifically, which is carried out in wood processing factories. This also includes the selection of wood plant species that are suitable for the purpose of their use or the product to be made. A number of wood processing products are plywood, blockboard, LVL, barecore, FJLB (Finger Joint Laminated Board), MDF (Medium Density Fiberboard), and pulp & paper.

Wood processing in the industry always requires a number of equipment ranging from the simplest, namely sawmills to complex processes such as pulp and paper mills. In addition to the physical or mechanical processing or production process, there is also a chemical process depending on the product to be produced. Sellers or providers of processing equipment or production machines are generally a complete set (complete line) so that they can be used directly and produce when the raw materials are ready. The more efficient and quality the equipment will be comparable to its price which is a fixed investment in the wood processing industry. The cost and benefit ratio factor is very important in selecting the machine or equipment, especially those that are export-oriented with large production volumes.

The concept of zero waste in the wood processing industries has not been fully implemented. There are still many wood processing industries whose waste pollutes the environment and can have social impacts. This includes sellers or providers of these machines, most of whom are still focused on providing machines or production equipment for the main product but not on the aspect of handling and processing waste. In fact, with the potential for waste produced being quite large, processing this waste is important. Pellet and briquette production is one solution to overcome this. Wood waste in the form of wood chips, offcuts, sawdust, slab and bark can be processed into briquettes and pellets. Sellers or providers of machines or production equipment that are innovative and environmentally sustainable will implement this concept. 

Briquette and pellet production will not only solve the waste problem but will also provide economic benefits. With raw materials for briquettes and pellets coming from waste itself, the cost of raw materials can be said to be zero so that in the end it will provide great benefits. Waste production of up to 1000 tons/month is very suitable for the production of briquettes, while if the waste is very large, for example 5000 tons/month or more, pellet production is more recommended. Briquettes can also be charcoaled to become charcoal briquette products which are in high demand from Turkey, Saudi Arabia and the Middle East. Meanwhile, wood pellets are widely used for power plants abroad, the need for which is expected to continue to increase along with the decarbonization trend. If the seller of wood production or processing machines also offers waste processing equipment such as pellet machines and briquette engines, it will make it easier for wood product producers to manage their environmentally friendly industry, namely zero waste and maximize profits because all parts of the wood can be utilized optimally.

Young Coconut Waste Processing: Briquetted or Pelleted!

When the weather is very hot like recently, drinking coconut water is very refreshing. This is because coconut water, apart from meeting the body's fluid needs, also meets the needs of electrolytes (ionically charged minerals found in cells, tissues and body fluids) which the body really needs. This electrolyte plays a role in supporting the activity of cells and body tissues and maintaining the balance of body fluid levels. When the body loses electrolytes due to physical activity or dehydration, consuming coconut water can help replace lost electrolytes and restore body fluid balance. There are many sellers of young coconut ice, especially in big cities. Apart from being sold in glasses, young coconut water is also sold in the form of whole young coconuts. The combination with young coconut flesh adds to the deliciousness of the drink. But it turns out that the waste from young coconuts is very polluting and has not been processed or used properly. The volume of young coconut waste is quite large, in fact, in the city of Makassar, South Sulawesi,  it is estimated that there is 15 tons/day of young coconut waste.

Young coconut waste can be processed into briquettes or pellets. Biomass densification technology is suitable for application as a solution for young coconut waste. The young coconut waste needs to be reduced in size (size reduction), namely with a shredder and hammer mill, then dried with a dryer before being compacted / densified into briquettes with a briquetting machine or into pellets with a pelletiser (pelleting machine). By briquetting or pelletizing the waste, it can be used as fuel or energy source for SMEs or boilers in industry. Many SMEs or processing industries can use this fuel. Apart from being environmentally friendly, it is also easy to use. Simple furnaces can be developed to use these briquettes and pellets.

Indonesia is famous for its seductive land of coconut islands. This is because the extent of coconut plantations in Indonesia reaches around 3.7 million hectares, most of which are smallholder plantations. The extent of these coconut plantations places Indonesia as the owner of the largest coconut plantations in the world. Coconut trees mainly grow along the coast, and indeed Indonesia also has the second longest coastline in the world, after Canada.

Don't Choose The Wrong Machine: Wood Pelletizer With Feed Pelletiser, and Wood Extruder With Charcoal Extruder

The visual appearance alone can sometimes be unbelievable. Two things can visually appear the same or very similar but turn out to be different. This often happens in the production of wood pellets and wood briquettes (pini kay briquette / uncarbonised briquette). And what's worse, this machine is the heart of the industrial production process, namely the pelletiser in the wood pellet industry and the extruder in the wood briquette industry (pini kay briquette / uncarbonised briquette). So that errors in selecting the machine can also have fatal consequences, namely not only is the production target not achieved, even the product in question is not successfully produced. This is why the buyer or user of the machine must be careful about the machine that will be purchased and used.

In the wood pellet industry, mistakes often occur, namely pelletisers are used for animal feed but are used for wood pellets. As a result, wood pellets may not be formed at all because the power for feed pelletisers is much smaller compared to pelletisers for wood or wood pellet production. Offers of cheap prices often make buyers or users tempted and do not look further, so that as a result they will be disappointed.

Likewise in the wood briquette industry (pini kay briquette / uncarbonised briquette). Wood extruders also have much larger motors than charcoal extruders. Briquettes produced with a wood extruder apart from not requiring additional adhesive are also denser and harder due to the use of a high-powered motor. The mistake that can occur is that a charcoal extruder is used for a wood extruder and this also usually happens because the price is cheaper. The briquettes produced from the wood extruder can then also be made into charcoal, producing the final product in the form of charcoal briquettes. Although charcoal briquette production using a charcoal extruder will also produce this product, the process route and product quality are different. Below is the route for the charcoal briquette production process.

The raw material used in route 1 is wood dust such as sawdust which is then pressed or compacted with a wood extruder. With strong pressure and high heat, no additional adhesive is needed, but lignin, which is a natural polymer found in wood, acts as an adhesive. The resulting briquettes can then be charcoaled in a carbonization furnace and the final product is charcoal briquettes. Meanwhile, in route 2, the raw materials are charcoaled or carbonized first, then the charcoal is mixed with adhesive, usually starch and pressed or compacted using a charcoal extruder. The use of additional adhesive is because in charcoal, lignin has been decomposed in the previous carbonization or carbonization process. The final product produced is charcoal briquettes. The quality of the charcoal briquettes in the route 1 process is better than the route 2 process because apart from being denser so the burning time is longer as well as the heat produced.

So, in order not to make the wrong choice, buyer / user have to be careful and precise about the specifications of the machine, as well as knowing the raw materials and production process and don't be easily tempted by offers of cheap prices. The greater the production capacity, the greater the need for pelletiser and extruder equipment, so that if the wrong choice occurs, the risk is fatal, because these machines are expensive. It is also important to note that the equipment purchased also comes from a manufacturer that has been tested so that it has reliable performance.

Production of Cow Dung Briquettes / Pellets as Fuel and Bioeconomy

The use of renewable energy is increasing along with global awareness of environmental and climate issues. Materials that used to be considered waste and polluted the environment, now with the concept of zero waste and circular economy, many have been converted into alternative energy or renewable energy. Large industries such as power plants, cement industry and so on have started to use this renewable energy in the framework of CO2 emission reduction or decarbonization programs. This decarbonization program is increasingly popular and is applied to various lines of life. 

As a real example is the cement industry in the UAE, namely Gulf Cement Co., which uses renewable energy from camel dung. From the results of operational trials it was found that every 2 tons of camel dung can replace 1 ton of coal. The use of animal dung as fuel is actually not a new thing for them, from ancestral stories cow dung has been used as heating or fuel, but many have not thought of camel dung. Gulf Cement Co currently uses 50 tons/day of camel dung as fuel. The UAE has a population of around 9000 camels for milk production, racing and beauty contests. Each camel produces 8 kg of manure per day, more or more than the farmer needs. Through a government program, camel breeders collect the camel dung at collection points. 

Cow dung has also been used as an energy source from the United States, Zimbabwe to China. In Indonesia this should also be done. With each cow producing an average of 15 kg of dung per day (about 2 times that of a camel), this is the same as the conditions in the UAE above, the volume of dung is more or more than what farmers need. The excess of this waste becomes an environmental problem and even has to be thrown into rivers and so on. Hundreds of tons of cow dung every day are not utilized in a number of areas in Indonesia, even though the dung can be used as fuel, especially when processed into briquettes or pellets (dried first). Compaction of cow dung into briquettes or pellets aims to obtain uniform size and shape, compactness, ease of storage and use, as well as saving on transportation costs. And to meet the needs of cement factory materials, such as briquettes / cow dung pellets are needed in large quantities, so large capacity production equipment is needed that works continuously. It is estimated that the need for pellets or briquettes is thousands to tens of thousands of tons every month.

In a cement plant there are 2 places that need heat energy: 1. calciner (where the calcination process occurs), 2. Rotary kiln (the heart of the cement factory, where the clinker is made). Renewable energy, such as briquettes or cow dung pellets, will usually be used in calciners with separate feeding points. Meanwhile, in rotary kilns that require higher heat, cement plants generally still use fossil fuels. The gradual use of renewable energy will reduce environmental pollution and accelerate the global decarbonization program. The cement plant itself can be said to be an industry that processes and destroys waste. This is because the cement plant can process waste such as slag and fly ash as an additive to the cement it produces - more details can be read here and also destroys waste, such as using cow dung as the fuel.