Minister Teten on Delayed Production of Red Cooking Oil: Constrained by Financing Scheme

BALI - The Ministry of Cooperatives and SMEs (Kemenkop UKM) opened its voice regarding the delay in the production of red cooking oil which has not met the target.

The Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki did not deny that oil palm cooperatives were constrained by the distribution of funds from the Oil Palm Plantation Fund Management Agency (BPDPKS).

"It was a bit delayed because of the financing scheme. It was, right, funded by the BPDPKS, but when it was piloted it turned out that from the plan there was a sizeable addition to the budget because it had to meet the standards of the Food and Drug Examination Agency (BPOM)," said Teten after met at the 2023 Inclusive Business Summit Side Event: "Collaboration for A More Inclusive ASEAN" in the Nusa Dua Region, Bali, Tuesday, August 22.

Teten assessed that the production of red cooking oil, which was previously targeted to be in production in January 2023, could not be realized because it required a supporting regulation.

"At the same time, we are currently preparing a Presidential Decree for all palm oil farmer cooperatives to be able to build a red cooking oil factory with BPDPKS funds," he said.

He emphasized that the delay in production of red cooking oil was not due to a lack of funds, but due to additional costs that could affect future prices.

"Right, from that cost to the price later it will affect it, because we want the price of red cooking oil produced by this cooperative of smallholders, besides edible oil being healthier and cheaper, also how can the people get a supply of cheap and healthy edible oil," he said .

The pilot project for red cooking oil in three districts of North Sumatra, namely Langkat, Asahan and Deli Serdang, is targeted to operate in September 2023. This pilot project is funded by BPDPKS in the amount of IDR 70 trillion.

"God willing, later in early September it will be inaugurated," he added.