Home News Indonesia Pushes for Development of CPO Derivative Products

Indonesia Pushes for Development of CPO Derivative Products

(Photo credit : Astra Agro Lestari)

JAKARTA (TheInsiderStories) – As a move to boost the country’s crude palm oil (CPO) related products, the Industry Ministry is stepping up efforts to boost the CPO by-products. The decision came at the time the commodity product is facing intense negative campaign in the world trade.

“At present, we are developing bio-ester, a derivative product of CPO, which has high value-added,” said the Head of Research and Development Agency of the Industry Ministry, Ngakan Timur.

He said the product will provide higher value than CPO as it will be used in cosmetics, whose price can be up to six times than the CPO.

The bio-ester product can also be used as raw materials for other products in the pharmaceutical, cosmetics, food, agriculture, fishery, oil and gas, lubricant and other consumer products.

One of the companies that had successfully developed bio-ester product is eBio Advanced Technology (eBio), a company from Germany, in cooperation with local firm PT Servotech. Established in 2013, eBio holds the eBio technology license, which was patented by Fraunhofer IVV.

The other by-products that have been developed by the company, said Ngakan, is the bio-degradable products which are environmentally friendly.

“In order to produce more derivative products of CPO, eBio will collaborate with the Research and Standardization Agency across Indonesia,” he added.

He said the Industry Ministry’s Research and Development has established an Agency for Standardization and Product Development in Pekanbaru. “This is a form of synergy between the private sector and the government which will provide a real contribution to the national economy,” he said.

Apart from supplying the domestic market, the bio ester product will also be sold to overseas market to help boost the country’s exports.

In 2017, Indonesia’s CPO exports reached 31.05 million tons, up 23 per cent from 2016 amounting to 25.11 million tons. The exports increased despite an intense negative campaign from non-government organizations as well as trade barriers in some countries.

Group Chairman of eBio Toshi Nakajima said at present eBio has established one production line. Once reaching its full capacity, the company’s plant could produce a total of 15 tons of bio-ester per day.

Email: roffien@theinsiderstories.com