InfoSAWIT, JAKARTA – Deputy Minister of Cooperatives (Wamenkop) Ferry Juliantono expressed concern over the plight of palm oil farmers, despite their ownership of land spanning dozens of hectares and their membership in cooperatives. These farmers still face long waits to obtain cooking oil.
“This situation indicates that the management of palm oil in Indonesia has not fully optimized benefits for farmers,” Ferry stated at an event at the Grand Sahid Hotel, Jakarta, on Tuesday (January 7, 2025).
To address this issue, the government plans to encourage cooperatives to establish their own processing mills, from crude palm oil (CPO) to cooking oil. Ferry noted that this initiative is expected to strengthen farmers' positions in the production chain. Thus, farmers will not only serve as raw material suppliers but also enjoy added value from processed products.
“From the Ministry of Cooperatives, we will promote the establishment of CPO and cooking oil mills by cooperatives. Hopefully, this will enhance farmers' welfare and ensure a more equitable supply of cooking oil, especially for cooperative members,” Ferry added.
This strategic move has received full support from the government. President Prabowo Subianto has allocated an additional budget of Rp 10 trillion to support cooperative programs. This fund will be managed by the Revolving Fund Management Institution (LPDB) to assist cooperatives in entering strategic sectors, including palm oil management.
“This is proof that Mr. Prabowo wants cooperatives to play a more significant role in the national economy. This fund will provide opportunities for cooperatives to engage in business sectors that have a substantial impact on society,” Ferry stated.
The establishment of cooking oil mills by cooperatives is also expected to ensure a more affordable and equitable supply of cooking oil, particularly for cooperative members. This aligns with the government's efforts to enhance the role of cooperatives in supporting the economic independence of communities.
With this initiative, the government is optimistic about improving the conditions of palm oil farmers while simultaneously strengthening cooperatives as a key pillar of the people's economy. (T2)