Teten Says The Price Of Red Meal Oil Is Cheaper Than Bulk Migor

Illustration (Photo: Doc. Antara)

JAKARTA - Minister of Cooperatives and SMEs Teten Masduki said the price of red edible oil is much cheaper than bulk cooking oil (migor).

“It has to be below the Migor (cooking oil), it can be Rp. 9,000 per kg, so it is cheap. This is a solution for the community and farmers and is also healthy and safe for consumers," said Teten as quoted from Antara, Friday, August 26.

The construction of the red edible oil factory is said to be President Joko Widodo's affirmative policy to improve the welfare of oil palm farmers and improve the distribution of these commodities.

The Palm Oil Research Center (PPKS) is also involved in planning the Detailed Engineering Design (DED) / building technical design document requested by the President to be completed by the end of August 2021.

After completing the DED, the processing machine was immediately produced to build a mini crude palm oil (CPO) factory and a red edible oil factory in order to achieve the red edible oil production target in January 2023.

Teten said, there are about 12 cooperatives that are ready to build red edible oil factories from North Sumatra, Riau, Jambi, Lampung, Central Kalimantan, South Kalimantan and West Kalimantan.

This readiness ranges from the willingness of the garden to financial matters.

“New factory, new technology and new products. This is different from cooking oil, which has a clear yellowish color, whereas red cooking oil is yellowish red,” he said.

He is optimistic that red edible oil can be absorbed through cooperative members, restaurant networks, and distributed to two sub-districts around the factory to reduce logistics costs.

Teten added that his party would cooperate with banks, the Palm Oil Plantation Fund Management Agency (BPDPKS), and the Cooperative Revolving Fund Management Institute, Micro, Small and Medium Enterprises (MSMEs) to disburse funds for the construction of the red edible oil factory.

The investment value disbursed for the construction of the red edible oil factory is Rp. 23 billion to produce 10 tons of the commodity with a return on investment of 4.5 years.

“Factory construction should not have any obstacles, in fact, the President is currently encouraging the strengthening of MSMEs, including strengthening the industry. This is part of the industry," concluded Teten.