InfoSAWIT, JAKARTA – President Prabowo Subianto has highlighted the strategic role of palm oil in Indonesia’s energy security and industrial development, pointing to the commodity’s wide range of potential downstream products, including fuels.
Prabowo made the remarks during the thanksgiving reception marking the 100th anniversary of Pondok Modern Darussalam Gontor in Ponorogo, East Java, on Saturday, September 19, 2026.
In his speech, Prabowo pointed to Indonesia’s ability to produce diesel fuel from palm oil as an example of how the country’s plantation resources can be converted into energy.
“Alhamdulillah kita sudah bisa produksi solar dari kelapa sawit,” Prabowo said.
The President described palm oil as a crop with broad applications, referring to it as a miracle crop because of the variety of products that can be derived from it.
According to Prabowo, palm oil can generate around 57 derivative products, extending beyond fuel into industrial applications such as soap and health-related products.
Palm Oil and Indonesia’s Energy Security
Prabowo’s remarks place palm oil downstreaming within the broader context of Indonesia’s efforts to strengthen domestic energy security and reduce dependence on fossil fuels.
Palm-based biodiesel has become one of the government’s key policies for expanding renewable energy use while creating additional domestic demand for palm oil. The President also said Indonesia had developed both diesel and gasoline based on palm oil.
For the palm oil industry, the expansion of downstream processing could broaden the role of palm oil beyond its traditional position as an export commodity. Its potential applications span energy, food, oleochemicals and consumer products.
The government has also continued to explore other domestic energy resources as part of its broader strategy to strengthen national energy resilience.
Technology Key to Palm Oil Downstreaming
Prabowo also encouraged Indonesians to view the country’s natural resources as assets that can be developed through technology and human-resource capabilities.
His remarks underline the government’s effort to position palm oil as one of the strategic commodities supporting Indonesia’s downstreaming agenda and energy security.
The direction also places greater emphasis on converting palm oil and its derivatives into higher-value products rather than relying solely on exports of primary commodities.
For the plantation sector, the development of palm-based fuels and other downstream products could create additional domestic uses for palm oil while expanding the industrial value chain around the commodity. (T2)
Source: InfoSAWIT
