Jakarta (ANTARA) - Minister of Co-operatives and Small and Medium Enterprises Teten Masduki said that palm farmers are now seling red palm cooking oil, not only fresh fruit bunches (FFB). They are pleased that their product’s value is increasing as they can now produce red palm cooking oil.
"They can now sell more than (just) fresh fruit bunches. If (they produce) 10 tons (of red cooking oil) daily, we calculate the product can be distributed to two sub-districts outside the palm plantation, and this will enhance the distribution of red cooking oil (as an alternative to) cooking oil to residents," he said at the 2022 Indonesian Retail Summit on Monday.
The summit was organized by the Indonesia Retail and Tenant Association (Hippindo) at Sarinah Building here.
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Speaking at the summit, the minister expressed his gratitude to the association for contributing to efforts to seek a market for red cooking oil.
Hippindo chairperson Budhihardjo has confirmed that the association has received a demand for 200 tons of red cooking oil from restaurant chains nationwide, he noted.
"We need not hesitate. We can build a mini-factory (to produce) CPO and red palm cooking oil for every one thousand hectares of palm plantation," the minister said.
Masduki also expressed his gratitude to State-Owned Enterprises Minister Erick Thohir for supporting the development of the Palm Research Center (PPKS) in Medan, North Sumatra, to study the feasibility of red palm cooking oil as an alternative to cooking oil commonly used by residents.
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"The 77th anniversary of Indonesia's independence is one of our momenta to make our palm farmers prosper and improve the supply of red cooking oil to residents, (maintain) its quality product because red cooking oil is more healthy, and we hope it will be more affordable because of its efficient production," he expounded.
Earlier, at a closed-door meeting with government ministers at the Presidential Palace on July 18, the minister confirmed that President Joko Widodo has agreed to the development of co-operatives-based red cooking oil development.
As co-operatives will be the basis of red cooking oil production, they will be able to directly purchase palm from farmers to produce crude palm oil and red palm cooking oil and market the finished products on their own, he explained.
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