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PalmCo Shifts Focus to Downstream Products to Drive Economic Growth
Wednesday, March 25, 2026 | 21:01 WIB

Documentation — Industrial palm oil processing facility owned by PT Perkebunan Nusantara (PTPN). ANTARA/HO-PTPN PalmCo
Jakarta (ANTARA) — PT Perkebunan Nusantara (PTPN) IV PalmCo, a subholding of PTPN III (Persero), is shifting its business focus from merely producing and exporting crude palm oil (CPO) to developing higher value-added downstream products in order to drive economic growth.President Director of PTPN IV PalmCo, Jatmiko K. Santosa, stated that the company is now focusing on downstream product development, including processing fresh fruit bunches (FFB) into advanced products such as Bio Propylene Glycol (BioPG), which can significantly increase economic value.
“The value added from downstreaming can increase up to dozens of times. This is our main driving force,” Jatmiko said in a statement in Jakarta on Wednesday.
Integrated Processing Facility Plan
He added that the company is preparing to begin the construction (groundbreaking) of an integrated palm oil processing facility in the Sei Mangkei Special Economic Zone (SEZ), North Sumatra.The plan is part of the company’s strategic direction aligned with the national downstreaming policy, including guidance from the Daya Anagata Nusantara Investment Management Agency (Danantara).
However, the timing of the groundbreaking still depends on shareholder approval and is expected to take place shortly after the Eid (Lebaran) period.“This program is part of a broader downstreaming ecosystem, not only in the palm oil sector but also across sectors as directed by Danantara,” he said.
Development Phases and Facilities
In the initial phase, PalmCo will build several key facilities, targeted to operate gradually starting in late 2028, including:- Margarine and shortening plant with a capacity of around 40,000 tons per year
- Cocoa Butter Equivalent (CBE) and Cocoa Butter Substitute (CBS) plant with a capacity of around 34,000 tons per year
A biodiesel plant with a capacity of approximately 450,000 tons per year is also planned as part of future development, particularly to support national energy security.
Economic Impact and Job Creation
The palm oil downstreaming project is expected to generate broad economic impacts, including employment.During construction through full operation, PalmCo estimates that approximately 2,900 jobs will be created.
In addition to direct employment, the industrial area is expected to create multiplier effects for other sectors, such as:“This is not just an industrial project, but also an effort to drive regional economic activity and create more equitable growth,” Jatmiko said.
- Logistics
- Small and medium enterprises (SMEs)
Supporting Smallholder Farmers
On the upstream side, the presence of downstream facilities is expected to provide market certainty for smallholder palm oil farmers.PalmCo projects that by 2030, the facility will be able to absorb up to:
- 2.7 million tons of fresh fruit bunches (FFB) per year
- Equivalent to around 567,000 tons of CPO
“Through downstreaming, we want to ensure that farmers’ production is absorbed sustainably. This is important to maintain the stability of the national palm oil ecosystem,” he stated.
Toward Higher Value Industry
PalmCo is optimistic that, with integration from upstream to downstream and strong policy support, this project will become a key milestone in transforming Indonesia’s palm oil industry toward higher value-added products.
PalmCo geser fokus ke produk turunan guna pacu perekonomian
PT Perkebunan Nusantara (PTPN) IV PalmCo, Sub Holding PTPN III (Persero) menggeser fokus bisnis dari sekadar produksi dan ekspor crude palm oil (CPO) menjadi ...









