South Sumatera: Ready to be Pilot Project of Developing Red Palm Cooking Oil

Foto by Dea Kinanti_Sawitfest 2021/ilustration of plantation
South Sumatera: Ready to be Pilot Project of Developing Red Palm Cooking Oil

InfoSAWIT, PALEMBANG – Bulk palm cooking oil issues and availability happen in South Sumatera Province. It is no question if bulk palm cooking oil price in one palm oil plantation center in national scale is not matched with the highest retail price (HRP), which is at Rp 14.000/liter and Rp 15.500/kg.

"Bulk palm cooking oil in many traditional markets in Palembang, the capital city of South Sumatera Province is about Rp. 18,000/kg," analyst of Agricultural Infrastructure, Plantation Agency of South Sumatera Province, H Rudia Arpian said to InfoSAWIT, Monday (20/6/2022).

It happens, he continued, for the distribution issues, namely infrastructures and the distance to supply the agents and retailers in many regions.

Arpian continued, District of Musi Rawas Utara (Muratara) is about 379 kilometers (km) from Palembang City; District of Empat Lawang is 303 km, District of Lubuk Linggau is 320 km, District of Musi Rawas is 296 km, and Ogan Komering Ulu (OKU) Selatan is 271 km.

But apart from these, he did welcome what President Joko Widodo (Jokowi) proposed to develop red palm cooking oil in many regions, namely in palm oil plantation centers (regions).

He thought, this could be the light at the end of the tunnel for the independent smallholders in this province to take part in the program.

He continued the independent smallholders are facing the unstable fresh fruit bunch (FFB) price phenomenon. They decreased their selling drastically for depending on the big factories.

In the province, Rudi continued, about 104.779 non – partnership smallholder families got the impacts of crude palm oil and its derivative product export ban.

He thought, the province needs to have red palm cooking oil mills as the solution to solve palm cooking oil price and availability.

“We hope the smallholders would contribute in fulfilling local red palm cooking oil and there would be cooperation which not depends on big industries. The smallholders need to get profits from their FFB production,” Rudi said.

He believed, the province is ready to be one of four provinces as the pilot project to develop red palm cooking oil mill that Minister of Cooperation and Small and Medium Business, Teten Masduki proposed.

“It means, the independent smallholders could join cooperation and in the future they would produce not only FFB but the cooperation could also sell red palm cooking oil as the source of nutrition and anti-oxidant for man’s health,” Rudi said. (T5)