PALMOILMAGAZINE, JAKARTA – Deputy Minister of Cooperatives Ferry Juliantono expressed concern over the plight of palm oil farmers. Despite owning dozens of hectares of land and being part of cooperatives, many farmers still struggle to access cooking oil.
“This situation indicates that palm oil management in Indonesia has not yet fully benefited farmers,” Ferry said during an event at the Grand Sahid Hotel, Jakarta, on Tuesday (7/1).
To address this issue, the government plans to encourage cooperatives to establish their own processing facilities, from crude palm oil (CPO) production to cooking oil manufacturing. Ferry stated that this initiative aims to strengthen farmers’ positions within the production chain, allowing them to benefit not only as raw material suppliers but also from the added value of processed products.
Also Read: CPO Market Declines: KPBN Inacom and Malaysian Futures in Downtrend
“Through the Ministry of Cooperatives, we will support the establishment of CPO and cooking oil processing plants by cooperatives. This effort, God willing, will improve farmers’ welfare and ensure a more equitable distribution of cooking oil, particularly for cooperative members,” Ferry added.
This strategic initiative has received full government support. President Prabowo Subianto has allocated an additional budget of IDR 10 trillion to back cooperative programs. The funds will be managed by the Revolving Fund Management Institution (LPDB) to help cooperatives enter strategic sectors, including palm oil processing.
“This demonstrates President Prabowo’s commitment to ensuring cooperatives play a more significant role in the national economy. These funds will enable cooperatives to engage in business sectors that have a substantial impact on society,” Ferry explained.
The establishment of cooking oil processing plants by cooperatives is also expected to ensure a more affordable and accessible supply of cooking oil, especially for cooperative members. This aligns with the government’s efforts to enhance the role of cooperatives in supporting economic self-reliance for communities.
With this initiative, the government is optimistic about transforming the welfare of palm oil farmers while strengthening cooperatives as a cornerstone of the people’s economy. (P2)