Indonesia is ready to step up its game in the palm oil market by promoting the development of Degummed Palm Mesocarp Oil (DPMO), a refined product from Palm Mesocarp Oil (PMO) that removes proteins and heavy metals. Moving forward, Indonesia aims to be known not just as a major producer of raw Crude Palm Oil (CPO) but also as a leader in producing DPMO.
In a recent dialogue showcased titled “Strategies to Enhance the Competitiveness of Palm Oil in Indonesia through Downstreaming,” Sahat Sinaga, the head of the Indonesian Palm Oil Board (DMSI), discussed the potential rebranding of Indonesian palm oil. “We aim to upgrade from just producing CPO to creating DPMO,” he said during the event in Jakarta.
Sahat emphasized that transitioning from CPO to DPMO means moving towards more valuable palm oil products that can be integrated into various functional products through innovative processing techniques. “This innovation not only retains the palm oil’s high natural micronutrients but also keeps carbon emissions low,” Sahat added.
He pointed out that new technological innovations in the development of DPMO could lower the Free Fatty Acid (FFA) levels in palm oil by implementing a re-esterification process.
Sahat believes these innovations are accessible even for small-scale farmers. “The technology aims for low carbon emissions, high nutritional value, stability against oxidation, and is relatively affordable for palm oil farmers to invest in, either individually or in collective corporate groups,” he explained.
He also hopes that these technological advancements will free palm oil farmers from the shadow of protectionism imposed by other global vegetable oil producers, enabling them to own and operate their own DPMO-producing palm oil mills.
“This isn’t just about changing how the world sees our palm products but also about opening up broader and more sustainable market opportunities,” Sahat concluded.
This new focus on DPMO could mark a significant shift in how Indonesia manages its palm oil commodities, aiming for a higher value and more sustainable production model that benefits the local agriculture and the global environment alike.