SURABAYA - The supply of cooking oil to the eastern Indonesian region is projected to be faster and more efficient after PT Industri Nabati Lestari (INL), a subsidiary of PT Perkebunan Nusantara (PTPN) IV PalmCo, operates a cooking oil packaging facility in the Kalimas Port area, Tanjung Perak, Surabaya, East Java.
The existence of this facility shortens the distribution chain of cooking oil to Kalimantan, Sulawesi, Maluku, and Papua, which have been served from the processing plant in the Special Economic Zone (KEK) Sei Mangkei, North Sumatra. With this new pattern, cooking oil is sent in bulk to Surabaya, then packaged and distributed to the destination area.
PTPN IV PalmCo President Director Jatmiko K Santosa said the move was part of the company's strategy to bring distribution points closer to the main markets in central and eastern Indonesia.
According to him, the location of Surabaya was chosen because it has strong port connectivity with various regions in East Indonesia, so that it can accelerate the flow of goods while increasing supply chain efficiency.
"Until now, products have been sent in the form of packaging from North Sumatra. With packaging done in Surabaya, distribution becomes more efficient and logistics costs can be reduced by 40 percent," said Jatmiko at the inauguration of the facility on Friday, June 5.
This efficiency is considered important considering that logistics costs are still one of the main challenges of national food distribution.
For basic commodities such as cooking oil, the high cost of shipping often has an impact on selling prices at the consumer level, especially in island areas that are far from the production center.
As one of the largest ports in Indonesia, Tanjung Perak has been a distribution node for goods to the eastern region. Surabaya's geographical position is closer to the destination market than North Sumatra, allowing for shorter delivery times and better supply.
For INL, this new facility is also a strategic step to strengthen the penetration of the cooking oil market outside Java Island. As the demand for household consumption and the food industry in East Indonesia increases, the company sees the potential for continued growth in demand.
Jatmiko said that strengthening the distribution network is part of PalmCo's transformation which is no longer only focused on the production of crude palm oil (CPO), but also increases the downstream business which generates higher added value.
"PTPN has the task of becoming a reliable state instrument in maintaining the availability of supplies and the stability of the national palm oil industry. Therefore, we continue to strengthen the downstream and distribution so that products can reach the community more effectively," he said.
The operation of the packaging facility in Surabaya is carried out through cooperation with PT Lestari Jaya Indonesia Maju (LJIM). Commissioner of PT LJIM, Major General TNI (Ret.) Gamal Haryo Putro said, the initial distribution from the facility has been running and has received a positive response from the market.
According to him, the distribution capacity will be increased gradually in accordance with the growth in demand in the target areas. The main focus in the initial phase is to ensure the smooth supply to various regions in the central and eastern parts of Indonesia.
"We see a considerable market need. Therefore, distribution will continue to be strengthened as operational capacity and market absorption increase," said Gamal.
In the midst of increasing food needs and national logistical challenges, the presence of packaging facilities in Surabaya is expected not only to accelerate the distribution of cooking oil to East Indonesia, but also to strengthen national supply chain resilience through a distribution system that is closer to the target market.
For PalmCo, the scheme of sending cooking oil in bulk from North Sumatra to be packaged in Surabaya also provides significant business benefits.
The company estimates that this step is able to reduce logistics costs by up to 40 percent compared to the previous distribution pattern, thereby increasing operational efficiency while strengthening the competitiveness of cooking oil products in the central and eastern Indonesian markets.
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