10 tons per Day, Red Palm Oil Mill Needs Rp 23 Billion of Investment

10 tons per Day, Red Palm Oil Mill Needs Rp 23 Billion of Investment

Palmoilmagazine, Red Cooking Oil

Palmoilmagazine, JAKARTA – To increase smallholders’ fresh fruit bunch (FFB) purchase and prevent the cheap FFB, the government had proposed to build red palm oil (RPO) mill.

Minister of Cooperation and Small Medium Business (SMB), Teten Masduki told, after joining the meeting led by President Joko Widodo at Istana Merdeka on Monday (18/7/2022), President himself approved the proposal.

Teten targeted, Pusat Penelitian Kelapa Sawit (PPKS) Medan could accomplish detail engineering design (DED) which would be finished in August 2022. If it is accomplished, it would be directly in production phase by involving Enterprises and the private sectors. It is predicted, one mini RPO and crude palm oil (CPO) mill would need about Rp 23 billion of investment within return of investment (ROI) about 4,3 years.

He thought, the investment could produce about 10 tons of RPO per day. the investment could be integrated with working capital from Lembaga Pengelola Dana Bergulir (LPDB) within 5% of interest rate.

The machine could be supported by Palm Oil Plantation Fund Management Agency (PFMA) and on – farm palm oil plantations could be in kredit usaha rakyat (KUR) scheme from Himbara.

“In the model, the cooperation would purchase FFB in cash from the smallholders. The smallholders should not be confused anymore about where to sell their production. The cooperation process it to be CPO and RPO. Then they sell it. If this is integrated with stunting program, for instance, PT Perkebunan Negara would be the off-taker, the smallholders could sell their own production,” Teten said, as in the official statement to Palmoilmagazine, Monday (18/7/2022).

To get 10 tons per day targets, he continued, FFB should be available at least 50 tons per day or about from 1.000 hectares. The government targeted, every 1.000 hectare palm oil plantations would have one mini CPO and RPO mill. (T2)


READ MORE ON GOOGLE NEWS. or Let's join the Telegram group "Palm Oil Magazine", click the link https://t.me/palmoilmagazine, and join. You must first install the Telegram application on your android.