This paper presents a strategic planning model aimed at optimizing the economic and environmental impacts of Palm Oil Mill Effluent (POME) treatment systems. The model determines the optimal selection of POME treatment systems to minimize environmental impact, specifically focusing on three systems: Anaerobic Digester Tank System (ADT), Covered Lagoon System (CL) with biogas capture, and Open Pond System (OP). The model incorporates constraints related to Fresh Fruit Bunch (FFB) production, POME generation, Biological Oxygen Demand (BOD), Chemical Oxygen Demand (COD), and Carbon Dioxide (CO2) emissions. The optimization framework, formulated as a mixed-integer linear programming (MILP) model, is solved using the GAMS 40.1.0 software. Integer decision variables are used to represent the choice of POME treatment systems that minimize environmental impact. The study specifically considers the ADT, CL, and OP systems, with results indicating that the ADT system is the most effective in reducing BOD, COD, and CO2 equivalent emissions, thereby highlighting its environmental benefits. The model has selected the ADT treatment system, which exhibits the lowest COD, BOD and CO2e emissions. Specifically, the COD registered an 85% reduction rate from 84,830 mg/L to 12,725 mg/L. The BOD level was reduced by 88% resulting in a BOD level from 41,208 mg/L to 4,945 mg/L. The minimum CO2e emission that can be archived was about 3,034 t CO2e per annum. This model provides a valuable tool for governmental agencies and policymakers to guide the private sector in developing environmentally sustainable POME treatment strategies.