Volume 11 Issue 4 ( December 2024)

The Indonesian palm oil industry has significantly boosted the nation's GDP and foreign exchange earnings, driven by the rise of Independent Smallholders (ISH). Despite this, environmental issues like deforestation and low land productivity persist. The government supports smallholders, but sustainable waste management remains a challenge. This research uses literature reviews, Expert Data Triangulation, and qualitative analysis to examine palm oil waste management, focusing on innovative waste use in handicrafts in Tanjung Leban Village. The research findings indicate that less than 16% of ISH farmers actively engage in palm oil waste management practices that incorporate local wisdom as a source of livelihood. These results suggest that integrating local knowledge and traditional practices could be an instrument to promote the downstream utilization of palm oil waste, thereby generating income and enhancing sustainability. Effective waste management provides economic benefits and contributes to environmental sustainability, offering potential advantages in renewable energy development, advancing rural communities, and conserving natural resources.

Keywords: biomass energy; palm oil; renewable energy; smallholders; waste management; waste utilization