PALMOILMAGAZINE, DELI SERDANG – President Joko Widodo officially launched the Pagar Merbau red palm cooking oil pilot project in Deli Serdang Regency, North Sumatra Province, on Thursday, March 14, 2024. This marks the establishment of Indonesia’s inaugural red palm cooking oil factory, signaling progress in the national palm oil industry and empowering smallholders.
With Indonesia boasting approximately 15.3 million hectares of palm oil plantations, of which 40.5% are cultivated by smallholders, efforts to enhance the value of production in the country are ongoing. The commencement of operations at the first red palm cooking oil facility is expected to substantially increase the value for these smallholders.
President Joko Widodo expressed his personal desire to see added value generated within the country. “That is why we constructed red palm cooking oil factory, as the first one. We do hope this would deliver additional values for smallholders, namely for those who join in (a) unions. Fresh fruit bunch (FFB) would be more stable because it would be processed here to be red palm cooking oil,” he said, as in the official statement to Palmoilmagazine.com, Thursday (14/3/2024).
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He also mentioned one mainstay of red palm cooking oil is that to have more competitive price than regular palm cooking oil. It also has vitamin A and E that remain well. This make it not only a product but also be economical for the people.
“The factory within 10 tons of crude palm oil per day – capacity should produce 7 tons red palm cooking oil in each day,” he said by taking every people to use domestic product as the support to market and consume sustainable products.
“This is real part of downstream sector, which is to multiply additional value from (palm oil) commodity by processing it to be a product. Do not sell FFB, do not sell CPO if they can be processed to be like it. This is very excellent,” he said.
The ceremony was attended by Minister of Public Works and People’s Housing, Basuki Hadimuljono; Minister of Cooperation and Small and Medium Business, Teten Masduki; Governor in duty of North Sumatera, Hassanudin; Regent of Deli Serdang, Muhammad Ali Yusuf Siregar; Director of Utama Holding Perkebunan Nusantara PTPN III (Persero), Mohammad Abdul Ghani. (T2)
