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Indonesia is the biggest producer country of crude palm oil in the world so that the utilization of palm oil industry waste as a solid fuel via dry torrefaction is a very promising method to produce not only green energy sources but also resolve the waste problems. This study aims to investigate the effect of temperature and holding time on the torrefaction of palm oil residue waste. The feedstocks used in these experiments were palm kernel and palm kernel shell. The feedstocks collected contained high moisture fraction which was then sun-dried for three days in order to reduce the water content. The results show that the temperature of 250°C produced a highest solid product which is more than 80% yield for palm kernel shell. The increase of torrefaction temperature and holding time resulted in decreasing the solid yield for both feedstocks. The palm kernel torrefaction produced less solid fraction than those of palm kernel shell at 250°C. In contrast condition at the higher temperature, palm kernel torrefaction produced less solid fraction than palm kernel shell. The heating value of solid product increased as the increase of temperature and holding time, while the energy yield decreased. [ABSTRACT FROM AUTHOR]