Indonesia Starts Red Cooking Oil Production in North Sumatra

President Joko Widodo inaugurated Indonesia’s first red cooking oil production facility in North Sumatra last week on March 14 aiming to advance the country’s palm oil industry and empower farmers, reports the Bernama, Jakarta.  The pilot plant is situated at Pagar Merbau in Deli Serdang and has a capacity to produce 10 tons of crude palm oil (CPO), resulting in approximately seven tons of red cooking oil per day, the president said. 

The plant is one of several red cooking oil plants that will be developed by the government in other locations in Sumatra, Kalimantan, and Sulawesi. The initiative is in line with Indonesia’s efforts to enhance the value of its palm oil sector, leveraging its vast oil palm plantations covering 15.3 million hectares, with 40.5 percent or 6.2 million hectares owned by smallholders.  The president said that by allowing the smallholders to develop their palm fruit bunches and further process it to red cooking oil, they can stabilize the palm oil price.

He further said that one of the advantages of red cooking oil is its competitive price compared to other cooking oils.  It is also rich in nutrients, antioxidants, vitamins A and E.  The development of red cooking oil plant is part of the government’s down streaming program to increase the added value of commodities by processing them into various products. He admonished not to sell commodities unprocessed in fresh fruit bunches or in crude palm oil.  Instead, such should be processed into finished products in the country.