Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki said the construction of red food oil, which was planned for early 2023 in Deli Serdang, North Sumatra, was still waiting for the harmonization of its legal umbrella.
Teten said that his party was still waiting for the harmonization process of the Minister of Cooperatives UKP (Permenkop UKM) regulations regarding the use of funds from the Palm Oil Plantation Fund Management Agency (BPDPKS) for oil palm farmer cooperatives.
"(The estimate) may take a month in the future so that January 2023 development can be carried out," he said in the 2022 Reflection and Outlook 2023 quoted by Antara, Monday, December 26.
Teten said that as soon as the Minister of Cooperatives and SMEs regarding the use of BPDPKS funds was completed, funds belonging to palm oil farmers in the institution could actually be used directly for the production of red food oil.
"Because this is indeed taking advantage of funds belonging to palm oil farmers that are collected (collected) from palm oil exports in BPDPKS. So, that's the farmer's right. Only now to distribute it, the regulations don't exist yet. If the SME Permenkop has finished harmonization, this can be resolved," he said.
Teten hopes that the legal umbrella regarding the funds can be completed soon so that the construction of a red food oil factory can also begin immediately.
The pilot project for the construction of a red food oil factory is carried out in collaboration with PTPN III, namely the Palm Oil Research Center (PPKS) and the Palm Oil Plantation Fund Management Agency (BPDPKS).
Teten emphasized that there are two big ideas related to the construction of a red food oil factory. First, providing access to cooperatives of oil palm farmers so that they can produce their own palm oil plantations and do downstreaming.
"So what they have been depending on is large industries to sell their crops, now they have the opportunity to produce their own palm oil so that oil palm farmers can get added value from their oil palm plantations," he said.
On the other hand, this effort is also an alternative solution for the community to be able to get more reliable cooking oil.
"We want cooperatives not to play in the marginal economy, but we want cooperatives to enter all sectors, including strategic sectors such as palm oil. We are world players, we produce 50 million tons of palm oil, we are the largest producer. Now, palm oil farmers are part of the mainstream, this is a big step that we must support," said Teten Masduki.
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