PALMOILMAGAZINE, TARAKAN — The North Kalimantan Provincial Government (Kaltara) is taking concrete steps to strengthen regional self-sufficiency in the palm-based cooking oil industry. Governor Dr. H. Zainal A. Paliwang, S.H., M.Hum led a coordination meeting (Rakor) on the establishment of a cooking oil processing plant at the Swiss-Belhotel Tarakan on Tuesday (Sept 30).
The meeting was attended by Acting Director General of Plantations, Ministry of Agriculture, Dr. Abdul Roni Angkat, S.TP., M.Si., along with palm oil mill (PKS) owners, farmer associations, and representatives from both central and local governments.
“God willing, this cooking oil plant will be built in North Kalimantan. It’s not only aimed at meeting local demand but also expanding our market across Borneo,” said Governor Zainal in an official statement received by Palmoilmagazine.com on Friday (Oct 3, 2025).
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According to him, the idea of building a cooking oil plant has been in the works for three years and is now being accelerated following directives from Minister of Agriculture Andi Amran Sulaiman. The governor emphasized that support from all 20 PKS operating in the province is crucial to ensure the project’s success. “Without their commitment to a sustainable raw material supply, this plan cannot move forward,” he noted.
During the discussion session, participants shared insights on mill capacity, production volumes, and export contract mechanisms — data that will guide the design and scale of the new facility. Governor Zainal also highlighted the need to empower plasma smallholders in the local palm oil ecosystem.
“Plasma farmers must be organized, as seen in South Sumatra with the SIAT association. We need accurate data on farmer numbers and plantation area so they have a strong channel to voice their aspirations,” he added.
The cooking oil plant initiative is expected to generate significant benefits for the province — from curbing inflation and stabilizing essential commodity prices to creating new jobs. “This marks an important step toward strengthening food resilience and boosting North Kalimantan’s regional economy,” Governor Zainal concluded. (P2)
