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Minister of Cooperation SMB Encouraged to Develop Smallholders’ Mill

Minister of Cooperation SMB Encouraged to Develop Smallholders’ Mill

InfoSAWIT, AGAM – The idea to develop palm cooking oil and red palm cooking oil is always proposed by Minister of Cooperation, Small and Medium Business (SMB), Teten Masduki when he met smallholders in many regions in Indonesia. The latest is that he told and supported it to the smallholders in District of Agam, West Sumatera Province.

From the official information from Ministry of Cooperation SMB that InfoSAWIT, got, Saturday (2/7/2022), he visited and discussed with them who join Koperasi Unit Desa (KUD) Tiku V Jorong. The smallholders that did not join the KUD also melted in the Thursday (30/6/2022) discussion.

But Minister Teten was not alone. He was with Regent of Agam, Andri Warman; Head of Cooperation and SMB Agency West Sumatera Province, Nazwir; Chairman of Agam Legislators, Novi Irwan; Deputy in Entrepreneurship Ministry of Cooperation SMB, Siti Azizah.

In the beginning, the smallholders told what they face. One smallholder and the member of KUD Tiku V Jorong, told, FFB gets very cheap after CPO export ban was revoked. It reduced their income from the mills. “Sir, FFB is the smallholders’ level is very cheap. We need your support that the mills should be developed or constructed and we could process our FFB to be palm cooking oil. We want the continuous activity/process from the cheap FFB which reduced our income. We also want to get financial helps through the cooperation for us,” the smallholder mentioned.

After hearing that, Minister Teten said and supported to construct mill to process FFB to be CPO, or palm cooking oil, or red palm cooking oil by the cooperation in District of Agam. “I hope, if the mill is developed, we would be able to supply palm cooking oil to the society,” Teten said. He thought, it is important to construct mill in cooperation – base, namely for KUD Tiku V Jorong.

“The smallholders would not depend on big mill and they could produce it themselves,” he said. If KUD Tiku V Jorong could construct factory (mill), the oil food supply for the people would be stable knowing that few months ago, palm cooking oil was rare to buy and it was expensive.

He continued his side is initiating a pilot project of palm oil downstream program by establishing red palm cooking oil innovation as the functional product (food and non - food) through cooperation. The program, he thought, would apply simple technology to produce CPO and produce the end products, such as, red palm cooking oil which is healthier than it commercially because red palm cooking oil maintains its phytonutrients, such as, vitamin A, E, and squalene.

"It can conquer bad nutrients or stunting that many babies could bear. The side products could be developed to be cosmetics or soap,” he said. He also said, the strategy would be developing the cooperation. “It needs to expand financial access to the cooperation through LPDB-KUMKM as the modal to work, collaborate with Palm Oil Plantation Fund Management Agency, investment and Bank Rakyat Indonesia within kredit usaha rakyat (KUR) scheme for the groups,” he said.

He continued, Pusat Penelitian Kelapa Sawit (PPKS) Medan has conducted pilot plant of red palm cooking oil technology which was demonstrated on 9 June 2022. He confirmed, there would be support to develop Indonesian National Standard for the new red palm cooking oil which would be done by Badan Standardisasi Nasional (BSN). His side is piloting the red palm cooking oil development by cooperation in six provinces, such as, North Sumatera, Riau, Jambi, Central Kalimantan, South Kalimantan, and West Kalimantan.

"The innovation of red palm cooking oil would realize the smallholders’ independency through downstream product of FFB to CPO, and from CPO to red palm cooking oil by the cooperation to escalate the smallholders’ value,” he said. The initiation could run well because the phase would start from the innovation, then there would be collaboration, then acceleration from many side to deliver the outcome as what many hoped. “I invite KUD Tiku V Jorong to process FFB to be CPO and red palm cooking oil independently. I talked to Minister Syahrul Yasin Limpo to provide certified seeds to get qualified production. The technology is in Medan, and it is about how to produce CPO to be red palm cooking oil,” he said. (T5)