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.

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Palm Oil Replanting Movement and Utilization of Biomass Waste

Palm oil trees begin to lose productivity after 20 years and need to be replaced after 25 years, while new trees take about four years to begin bearing fruit. This generally renders the land unproductive during this four-year period, which discourages farmers from replanting their palm oil. However, intercropping during this period can still provide benefits for farmers. Planting short-term crops like upland rice and corn alongside palm oils can help farmers earn additional income while the palm oils bear fruit and mature.

In 2024, Malaysia, the world's second-largest palm oil producer, began implementing land intensification due to limited land area, only replanting 2%, or approximately 114,000 hectares. This is despite the country's target of replanting 5% of its land. The situation in Indonesia is not much different, with replanting predicted to be less than 2%. For example, if only 1.5%, or approximately 246,000 hectares, are replanted, it would be disproportionate to the area of ​​its oil palm plantations, which is nearly three times Malaysia's. Furthermore, replanting should be carried out periodically every year to achieve optimal palm oil production performance.

The reluctance or slow pace of replanting has led to a decline in national crude palm oil (CPO) production. Malaysian palm oil production has even stagnated for more than a decade due to limited land for new plantations and slow replanting. Meanwhile, in Indonesia, concerns about deforestation have also impacted the expansion of new oil palm plantations. Crude palm oil (CPO) production will decline further if labor shortages and the spread of ganoderma fungus reduce yields.

Given the above conditions, the replanting of palm oil plantations must be encouraged to maintain or even increase palm oil production. The issue of biomass waste from palm oil trees, which cover thousands of hectares, also poses a challenge. With such a large volume of old palm oil trees, utilizing them for value-added products is crucial. With an average hectare of palm oil plantations containing 125 trees, each tree yielding an average dry weight of 2 tons, this yields 250 tons of dry weight of biomass per hectare. For 10,000 hectares, this yields 2.5 million tons of dry weight, and for 100,000 hectares, this yields 25 million tons of dry weight. An optimistic estimate would be that Indonesia could replant 5% of its land, or 820,000 hectares, for 205 million tons of dry weight of biomass. Similarly, Malaysia, with 5% replanting, or 285,000 hectares, would yield 71.25 million tons of dry weight.

Business readiness factors, both in terms of technology and the market or user base for the product, need to be carefully assessed. 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 waste biomass from old palm oil trunks. Dead old palm oil trunks, often left abandoned on land, should be utilized to produce these useful, value-added products.