Crude Palm Oil (CPO) is a vegetable oil derived from the extraction of the flesh of the oil palm fruit (Elaeis guineensis). This oil has a natural reddish hue due to its high carotenoid content and a relatively high free fatty acid (FFA) level. CPO serves as a primary raw material in various industries, including:

✔ Food industry → Used in margarine, cooking oil, and various processed food products.

✔ Energy industry → A key ingredient in biodiesel production, serving as a renewable energy

alternative.

✔ Cosmetic and pharmaceutical industries → Found in soaps, lotions, and skincare products.

CPO is obtained through a process that separates the pulp from the seed, followed by. pressing and refining to produce crude palm oil. The remaining seed is not wasted but is further processed into palm kernel oil (PKO), which has distinct characteristics and additional. benefits.

The Role of CPO in Indonesia’s Industry and Economy As the world’s largest producer and exporter of Crude Palm Oil (CPO), Indonesia plays a crucial role in the global palm oil supply chain. According to the Ministry of Agriculture, Indonesia has approximately 16.38 million hectares of oil palm plantations, with an annual production of 46.8 million tons of CPO. Of this total, 73.83% of Indonesia’s agricultural export value comes from palm oil, making it one of the country’s key economic sectors.

The palm oil industry not only contributes to economic growth but also serves as a major source of employment, particularly for communities in palm oil-producing regions such as Sumatra, Kalimantan, and Sulawesi. Additionally, palm oil plays a vital role in food and energy security, especially with the rising demand for biodiesel as a more environmentally friendly alternative energy source.