Jokowi Inaugurated Red Food Oil Factory In North Sumatra, Teten: It Is Hoped That It Can Overcome Stunting

Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki. (Photo: Doc. Kemenkop UKM)

JAKARTA - The Red Food Oil Factory managed by the Pujakesuma Cooperative with PTPN II in Pagar Merbau, Deli Serdang Regency, North Sumatra (North Sumatra), was inaugurated by President Joko Widodo (Jokowi) today.

Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki said the Red Food Oil Factory Pagar Merbau is the first factory in Indonesia to produce new products of red food oil and is one of three pilot projects (pilot project) for Red Food Oil in collaboration with PTPN.

"In addition to the three pilot projects, we are currently preparing an independent scheme from the People's Palm Oil Farmers Cooperative in a number of locations, such as in Tanah Laut Regency, South Kalimantan; Pelalawan Regency, Riau; Sekadau Regency, West Kalimantan and other provinces to replicate the Red Food Oil Factory in Pagar Merbau," said Minister Teten in a written statement, Thursday, March 14.

Teten assessed that red food oil is believed to be an alternative to healthy cooking oil.

"Because this contains natural palm oil compounds at affordable prices for the people of Indonesia, even red food oil can also be used to overcome stunting," he said.

Currently, said Teten, more than 40 percent of oil palm plantations in Indonesia are owned and managed by self-help farmers.

However, he regretted that for decades oil palm farmers have been faced with the issue of fresh fruit bunch prices (FFB) which are ups and downs and full of uncertainty.

"On the other hand, we also face the supply and price of cooking oil in the market which is also very dynamic. In fact, at one time it was scarce in the market with soaring prices," he said.

Furthermore, Teten hopes that in the future every 1,000 hectares (ha) of oil palm plantations managed by cooperatives must be equipped with a red food oil factory as a complementary infrastructure.

"According to the president's direction, downstreaming of palm oil into red food oil by cooperatives aims to ensure that farmers are more prosperous, ensuring the sustainability of healthy cooking oil supplies at affordable prices for the community," he said.

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.