Sandy podzolic soils, prevalent on former mining lands, present significant agricultural challenges due to their coarse texture, depth, acidity, and low fertility. This study evaluated the impact of bio-compost fertilizer, delivered in biodegradable oxium sacks, on soil quality and oil palm productivity in these soils. Conducted over 12 months in a 4-year-old oil palm plantation in East Belitung Regency, Indonesia, the research compared various combinations of bio-compost and inorganic fertilizers with a control group. The findings revealed that the integration of bio-compost with reduced doses of inorganic fertilizers markedly improved soil quality and decreased dependence on chemical inputs. Specifically, applying 50 kg or 75 kg of bio-compost per palm along with 50 % or 75 % of the standard inorganic fertilizer dose was particularly effective. This approach increased oil palm productivity to 14.50–15.87 tons per hectare per year. The method provides a sustainable solution for the palm oil industry and small farmers, improving soil fertility and productivity in degraded podzolic soils. The use of oxium biodegradable sacks allowed for a gradual release of nutrients. Future research should further explore the potential of bio-compost as a soil conditioner and its long-term environmental impacts across various soil types.