Politeknik LPP Yogyakarta with BPDP Increases Palm Oil-Based for UKM Entrepreneurship in Jepara

The Plantation Fund Management Agency (BPDP) in collaboration with the Politeknik LPP Yogyakarta, held a workshop with the theme 'Innovation of Palm Oil-Based UMKM Products for UMKM Activists and Generation Z' in Jepara, on Tuesday - Wednesday, May 27 - 28, 2025.

This activity was attended by Deputy Director II, Galuh Banowati, virtually representing the Director of the Politeknik LPP Yogyakarta, Mustangin. Also present in person were the Head of the BPDP UMKM Division, Helmi Muhansah, representing the Director of BPDP Edi Abdurrachman; Head of the Cooperatives, MSMEs, Manpower and Transmigration Service represented by the Head of the UMKM Division, Abdul Muid; Head of the Kudus KPPN, Herkwin, to UMKM activists and generation Z.

The activity was attended by 70 participants consisting of UMKM activists and generation Z (vocational high school students) in the Jepara area. This activity aims to provide knowledge about the benefits of palm oil, starting a home-based SME business, how to market home-based SME products, to the practice of making SME products from palm oil and palm oil waste. This activity is not only a form of a campaign for the benefits of palm oil but also hopes to create an entrepreneurial spirit for palm oil and palm oil waste products that can have a good economy.

Galuh Banowati said that this activity is not only a form of participation of higher education institutions in the palm oil campaign. This is also part of a commitment to supporting the development of innovations in palm oil and palm oil waste products, especially among the younger generation and UMKM actors.

"Through this activity, participants are expected to be able to better understand and recognize the benefits of palm oil, and be able to make home-based products with palm oil materials and waste," he said in his speech, on Tuesday (May 27, 2025).

"Evidence of the benefits of palm oil can be seen from palm oil and palm oil waste products that are easy to make, and easy to market if accompanied by a good marketing model," continued Galuh.

On the same occasion, Head of BPDP's UKMK Division, Helmi Muhansah, explained that although Jepara is not a palm oil producing area, its people still have a close relationship with the downstream palm oil industry.

"In Jepara, around 87% of food products and daily necessities around us contain palm oil elements. This shows that palm oil is very close to people's lives, even outside the producing areas," he explained.

"MSMEs in Jepara have a great opportunity to partner with BPDP, as long as the products produced are palm oil-based. This workshop is a strategic initial step to introduce the manufacture of palm oil products, including from its waste. Various innovations in palm oil products were also introduced, ranging from helmets made from palm fiber, palm batik, ink, bioasphalt, to aircraft fuel," added Helmi.

This activity, said Helmi, is certainly very beneficial for MSMEs in the region. "We hope that it can be applied and innovated as a form of improving the welfare of SMEs in Jepara, thank you to BPDP and LPP Polytechnic for having Jepara as one of the locations for palm oil SME product activities," he concluded.

For example, one example of a successful palm oil SME partnership is the export of palm fronds by alumni of the BPDP business incubation program. This is a great opportunity for SMEs in Jepara to create innovative and highly competitive products.

As a provision for developing UKM products

Head of the SME Section of the Cooperatives, SMEs, Manpower and Transmigration Service of Jepara Regency, Abdul Muid, appreciated the activities initiated by the LPP Yogyakarta Polytechnic with the support of BPDP. His party encouraged vocational school students as the younger generation to make the most of this activity as a provision in the palm oil product business.

"Jepara does not have palm oil but it turns out that palm oil products can be made easily, it only takes will and a little touch of innovation, the younger generation should find it easy to develop SME products," he said.

Meanwhile, Herkwin as the Head of the State Treasury Service Office (KPPN) Kudus conveyed the support of BPDP and the Politeknik LPP Yogyakarta to be useful in strengthening regional MSMEs.

"This program is very strategic to improve the quality of human resources and the competitiveness of local UMKM products including the development of palm oil products which will ultimately encourage economic growth in the community," he said.

Variety of materials presented

In the workshop initiated by the Politeknik LPP Yogyakarta with the support of BPDP, participants received a variety of materials presented by the speakers. On the first day, the materials presented included the utilization of UMKM products made from Palm Oil and Palm Oil Waste which can be used as food, beverage, cosmetic, and other environmentally friendly products including how to make them. Furthermore, the material on the Development of MSMEs Made from Palm Oil and Palm Oil Waste was presented by Arifin who represented the Head of the UMKM Division.

Other materials were delivered by Azhari Rizal (Lecturer at LPP Yogyakarta Polytechnic) with the theme of UMKM Product Marketing Model for Generation Z, which discussed business management and marketing for beginners. Strategies for selecting types of palm oil-based businesses, as well as the importance of branding aspects, packaging design, financial reports, and halal certification.

On the second day, this workshop activity became the most awaited moment for participants, because they were directly involved in the practice of making various products from palm oil and palm waste. Practical activities were divided into three main categories, namely crafts, oleochemical-based products (oleochemicals), and food (oleofood), which were guided by Rega Prasetya, Lintang Bunga Hapsari, and Taffrika Nur Himah (team from LPP Yogyakarta Polytechnic).

Before the practice began, participants received material supplies covering the product manufacturing process, preparation of tools and materials, packaging techniques, and strategies for creating advertising content for social media.

In addition, participants also had the opportunity to make terrazzo pots for ornamental plants from palm shells explained by Rega Prasetya. This process is not only environmentally friendly but also provides added value from palm oil waste that is usually not utilized. Meanwhile, Lintang Bunga Hapsari guided the making of soap from palm oil waste, which shows the great potential of palm oil as a basic ingredient for household cleaning products. In the oleofood section, Taffrika Nur Himah explained the stages of making delicious palm-based food with high selling value.

This activity is expected to be able to open the insights of UMKM actors about the great potential of palm oil derivative products and waste, as well as encourage innovation based on local materials to increase the competitiveness and sustainability of their businesses.

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