Why Indonesia Is a Key Country for Palm Kernel Shell Supply

Indonesia is the world’s largest palm oil producing country, supported by an extensive oil palm plantation and processing industry. This large production base also creates significant volumes of palm biomass, including Palm Kernel Shell (PKS).

PKS is generated during the processing of palm nuts, when the shell is separated from the palm kernel. With a large number of palm oil mills operating across Indonesia, particularly in Sumatra and Kalimantan, the country has developed a strong and continuous supply base for PKS.

A Well-Developed PKS Supply Chain

One of Indonesia’s major strengths is not only the availability of PKS, but also the development of an established supply chain.

PKS can be collected from multiple palm oil mills, transported to stockpiles, screened and prepared according to customer requirements, and consolidated into larger cargoes for export. This network of producers, aggregators, traders, stockpile operators and logistics companies enables Indonesia to supply international biomass markets.

Ports located near major palm oil producing regions also support bulk shipments of PKS to overseas customers.

Growing Demand from Asian Biomass Markets

Indonesia has developed an important role in supplying PKS to biomass markets in Asia. Japan and South Korea are among the markets where PKS is used as a renewable biomass fuel for power generation.

As demand for reliable and sustainable biomass continues to develop, Indonesian PKS suppliers with consistent quality, stable supply capacity, traceable sources and reliable logistics are likely to remain important participants in the international biomass market.

Building Reliable Connections with Indonesian PKS Suppliers

PKS Korea is developing a global network of qualified PKS suppliers through its Certified Vendor Program (CVP).

The objective is to identify reliable suppliers, producers and aggregators that can provide consistent PKS supply and connect qualified suppliers with future opportunities in the South Korean biomass market.

Indonesian PKS suppliers interested in developing long-term business opportunities with South Korea are welcome to learn more about the PKS Korea Certified Vendor Program.