Identifying Circular Economy Opportunities in the Palm Oil Sector in Indonesia (Available in English Only)
The report "Identifying Circular Economy Opportunities in the Palm Oil Sector in Indonesia" examines how circular economy (CE) practices can enhance sustainability and resource efficiency across Indonesia's palm oil value chain. It assesses CE applications at smallholder and corporate plantations, milling operations, and refineries, focusing on materials, energy, water, waste, and emissions. The study combines qualitative methods like interviews and field observations with quantitative surveys and statistical analyses to evaluate practices such as palm oil cattle integration, palm oil mill effluent (POME) application, and renewable energy usage. The findings reveal notable efficiencies: fertilizer use is reduced by up to 86.7%, and carbon emissions are significantly lowered—up to 96.4% in corporate plantations. Palm oil mills have integrated renewable energy sources and waste repurposing strategies, while refineries convert by-products into valuable industrial inputs, reducing waste and operational costs.
Despite the success of CE practices, several challenges remain. Smallholders struggle with rising costs and limited access to organic fertilizers and technology, while corporations enjoy more resources and support. The report emphasizes the need for stronger government incentives, clearer land tenure policies, and improved access to training and finance. Furthermore, the integration of digital tools and collaboration among stakeholders is crucial for expanding CE adoption. The report calls for holistic strategies to scale CE implementation across the palm oil industry, offering policy recommendations to address systemic barriers and enhance the sector's environmental and economic resilience.
For a more detailed understanding, please refer to the full document (available in English only).
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