One of the potential resources of biomass in Indonesia is from palm oil. By the massive amount of waste palm oil, transformation wastes into high valuable material such as bio-fuel become an answer to solve the problem in waste treatment. A transformation of waste to bio-fuel becomes the main target to fulfil energy demand in transportation sector in Indonesia. By producing bio-fuel a bio chemical is also obtained to increase the added value material from the palm oil waste. The objective of this study is to make a model projection for the palm oil plantation in Indonesia and identify the potential biomass feedstock from oil palm process to produce bio-fuel and bio-chemical product by evaluating several parameters such as: technical, supply, economic, environment, bio-polymer composition, etc. An analysis model is needed to determine the potential of palm oil waste based on its capacity and the quality of bio-fuel. The selection type of palm oil waste will be analysed by using Analytic Hierarchy Process (AHP). The type of oil palm waste is derived by using a set of pairwise comparisons to obtain the weight of importance in the decision criteria and relative performance measures. The projection based on the model showed an increase of plantation area that proportional to the population of palm oil tree with growth rate of 6% per year. The composition of plantation area of palm oil is dominated by the group age 3-7 with 26% share percentage. The results by Analytical Hierarchy Process (AHP) showed that the best selection of palm oil waste is empty fruit bunch (EFB) due to its availability, production cost and yield.