Food and Downstream Program

Enhances the added value of palm oil products through research funding, infrastructure development, and industry partnerships. This program aims to strengthen the national palm oil industry, ensure food security through domestic cooking oil production, and improve the competitiveness of downstream palm oil products in the global market. With this initiative, Indonesia is expected not only to be a crude palm oil exporter but also a sustainable and innovative palm-based industrial hub.

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Legal Basis

This program is based on several key regulations, including:

  • Presidential Regulation No. 132 of 2024 – Governs the use of BPDPKS funds to support downstream plantation industry development and national food security.
  • Ministry of Finance Regulation No. 49/PMK.05/2018 – Establishes the mechanism for utilizing BPDPKS funds for food programs and palm oil downstream industry development.
  • Ministry of Industry Regulation No. 13 of 2019 – Outlines strategies for developing palm oil-based downstream industries to enhance value-added products and national competitiveness.

Program Objectives

This program is designed to:

  • Enhance National Food Security – Optimize the utilization of palm oil for domestic food needs, including cooking oil and vegetable fats.
  • Support Product Diversification – Encourage the development of palm oil derivatives such as oleochemicals, pharmaceuticals, cosmetics, and other industrial raw materials.
  • Increase Value-Added and Industrial Competitiveness – Develop the palm oil industry value chain to reduce dependence on crude palm oil (CPO) exports and focus on higher-value processed products.

Program Scope

The Food and Downstream Industry Program covers several key areas:

Development of Palm Oil-Based Food Industry

  • Support the production and distribution of palm-based cooking oil for domestic needs.
  • Promote research and innovation in the use of vegetable fats for the food and beverage industry.

Strengthening Palm Oil Downstream Products

  • Facilitate the growth of the oleochemical industry for pharmaceuticals, cosmetics, and cleaning products.
  • Boost investment in palm-based bioenergy industries, such as biohydrocarbons and biojet fuel.

Research and Technological Innovation

  • Develop more efficient and sustainable processing technologies for palm oil derivatives.
  • Conduct studies on the potential use of palm oil in emerging industries, including biodegradable plastics and bio-based lubricants.

Infrastructure Support and Industrial Partnerships

  • Strengthen collaboration between upstream producers (farmers) and downstream industries to improve supply chain efficiency.
  • Build and modernize palm oil processing facilities to accelerate industry downstream development

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