Palm Oil Processing Fuels Indonesian MSMEs' Rise to Global Markets

The development of palm oil processing in Indonesia is creating opportunities for micro, small, and medium enterprises (MSMEs) to increase product value added while expanding access to export markets.

Eisha Maghfiruha Rachbini, Director of the Program of the Institute for Development of Economics and Finance (INDEF), stated that the potential for palm oil-based MSMEs in Indonesia is vast. With over 193 types of derivative products developed through the palm oil downstream program, MSMEs can create various palm derivative products ranging from oleofood to bioenergy.

The development has a positive impact on the national economy, including increasing the price of TBS at the farmer level, expanding employment, and creating a wider chain economic effect. Eisha Rachbini encourages palm oil-based MSMEs to increase competitiveness and dare to enter the international market.

Currently, the contribution of MSMEs to the national export value is relatively low, around 15 percent. However, with the involvement of MSMEs in the global supply chain, they can encourage business transformation, increase productivity, and strengthen product quality in accordance with global standards.