Economic Feasibility of Nutrient-Rich Fertilizer Derived from Solid and Empty Fruit Bunches of Oil Palm

Onny Setyawan; Nicholas Renaldo; Suhardjo Suhardjo; Gusrio Tendra; Kristy Veronica; Achmad Tavip Junaedi; Amries Rusli Tanjung

doi:10.61230/luxury.v3i2.126

Authors

Onny Setyawan Institut Bisnis dan Teknologi Pelita Indonesia, Indonesia
Nicholas Renaldo Institut Bisnis dan Teknologi Pelita Indonesia, Indonesia
Suhardjo Suhardjo Institut Bisnis dan Teknologi Pelita Indonesia, Indonesia
Gusrio Tendra Institut Bisnis dan Teknologi Pelita Indonesia, Indonesia
Kristy Veronica Institut Bisnis dan Teknologi Pelita Indonesia, Indonesia
Achmad Tavip Junaedi Institut Bisnis dan Teknologi Pelita Indonesia, Indonesia
Amries Rusli Tanjung Institut Bisnis dan Teknologi Pelita Indonesia, Indonesia

DOI:

https://doi.org/10.61230/luxury.v3i2.126

Keywords:

Economic Feasibility, Fertilizer, Solid, Empty Fruit Bunches, Oil Palm

Abstract

This study aims to evaluate the economic feasibility of producing nutrient-rich fertilizers from solid fruit bunches (FBs) and empty fruit bunches of oil palm, taking into account nutrient composition, production process, cost structure, and potential market opportunities. This study bridges the gap between agricultural science and business economics by combining nutrient analysis of oil palm solids and empty fruit bunches with a cost-benefit evaluation and market potential assessment. This study used a mixed-methods design that combined: (1) experimental laboratory analysis (nutrient profiles and processing trials); (2) process mass balance and cost accounting to develop a production cost model; and (3) market and financial analysis (surveys, price benchmarking, and financial valuation). This study shows that solid palm oil waste, specifically solid decanter cake and empty fruit bunches (jangkos), contains significant macro and micronutrients that can be converted into high-value products such as organic fertilizer and soil conditioner. Provide palm oil mills with a science-based business model to convert waste into value-added products.

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