The research into palm oil waste treatment is extensive. However, the most effective and efficient waste treatment related to sustainability and environmental issues is still being encouraged. In recent decades, the circular economy framework has been adopted as a means of simultaneously addressing environmental and economic growth issues. This paper demonstrates the potential of bioconversion of solid decanter palm oil waste to develop a circular economy. This study also proposes the establishment of a black soldier fly larva (BSFL) farm to treat solid decanter palm oil waste. Our analysis shows that the BSFL will produce high-value biomass in protein (approximately 55%) and fat (approximately 12%) using solid decanter palm oil waste as a substrate. Furthermore, this biomass can be transformed into animal feed, with the residues from this process being used as fertiliser to be applied back to the palm oil plantations. This design will improve palm oil employee revenue and reduce solid decanter palm oil waste. To implement this design, we recommend: (1) obtaining full support from top management at the palm oil company; (2) introducing the technology to employees smoothly, including the BSFL rearing system, harvesting, and product downstream development; (3) gaining government support; and (4) securing goodwill from employees and the wider society.