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  • How does palm oil production affect the quantity of fresh fruit bunches?
  • Given that palm oil production involves two heterogeneous markets (i.e., the edible oil and biomass energy markets), the decision regarding the quantity of fresh fruit bunches is mainly influenced by preferences in these markets.
  • How is palm oil made?
  • Palm oil is traditionally, and still industrially, produced by milling the fruits of oil palm. Besides milling, palm oil is produced by cold-pressing the fruit of the oil palm since the 1990s. This type of artisanal palm oil is usually not further refined, so they keep the natural red color.
  • Does palm oil mill increase the production of edible oil and biomass energy?
  • Consequently, the palm oil mill increases the production of edible oil and biomass energy. High production of fresh fruit bunches can lower the prices of edible oil and biomass energy (Proposition 2 (c) and 2 (f)).
  • Can palm oil be used as a power plant?
  • In terms of environmental issues, biomass energy conversion conducted by palm oil mills can simply apply the pyrolysis process, similar to coal-based power plants. According to Mohd Idris and Hashim (2021), palm oil biomass can support a coal-based power plant to maximize electricity production with low greenhouse gas emissions.