Minister Teten Targets Red Food Oil Pilot Project In North Sumatra To Operate September 2023

BALI - Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki targets pilot projects (pilot projects) for red food oil in Langkat, Asahan, and Deli Serdang Regencies, North Sumatra (North Sumatra), to operate in September 2023.

This was revealed by Teten during the Side Event Inclusive Business Summit 2023: "Collaboration for A More Inclusive ASEAN" in the Nusa Dua area, Bali, Tuesday, August 22.

"God willing, it will be inaugurated in early September in North Sumatra. That is, right, a pilot project (pilot project)," said Teten.

Teten added, along with this, the Presidential Regulation (Perpres) is currently being prepared for all cooperatives of oil palm farmers to be able to build a red food oil factory with funds from the Palm Oil Plantation Fund Management Agency (BPDPKS).

"(For Sumatra the pilot project), but later there will be a Presidential Decree for all (regions in Indonesia). This Presidential Regulation is still in the administrative process," he said.

He emphasized that farmers' funds in BPDPKS had exceeded the figure of around Rp70 trillion.

"Well, this is what we want to use for them to build factories, CPO factories, and food oil factories, which are around Rp. 23-25 billion.

Previously reported, the North Sumatra Provincial Cooperatives and SMEs Office (North Sumatra) continues to collaborate and focus on strengthening the institutions of the Oil Palm Farmers Cooperative, whose potential is very large in North Sumatra, especially districts on the East Coast, Southern Tapanuli, as well as Central Tapanuli.

"In the near future, the cooperative will have a red food oil factory which is managed directly by cooperatives and raw materials from cooperative members who are also oil palm farmers," said Head of the Institutional Office of Cooperatives and SMEs of North Sumatra Province Unggul Sitanggang through his official statement, some time ago.

There are three cooperatives in North Sumatra that are trusted for a fully supported red food oil development program by the Ministry of Cooperatives and SMEs (Kemenkop UKM), namely the Unggul Sejahtera Palm Oil Producer Cooperative in Langkat Regency, Pujakesuma Farmers Cooperative in Deli Serdang, and Bukit Kijang Oil Palm Farmers Producers Cooperative in Asahan Regency.

"This program is a piloting of the National Program of the Ministry of Cooperatives and SMEs of the Republic of Indonesia which is implemented in 5 real sector cooperatives in Indonesia," he said.