We supply products of palm cooking oil directly to minimarkets. Our goal is to shorten the distribution channel as well as to equalize supply. Thus, the price can be equal to all.
Jakarta (ANTARA) - The downstream industry of palm oil and crude palm oil (CPO) derivatives has contributed significantly to the national economy, Industry Ministry's Director General of Agro-Industry, Putu Juli Ardika, stated.

“The progress in the downstream of the palm oil industry has been very good. Currently, there are 168 types of downstream products from palm oil, while in 2011, there were only 54 types,” Ardika noted in a statement here on Tuesday.

In total, the exports of palm oil and its derivative products had reached 33.1 million tons per year, out of the total production of 53 million tons annually.

In 2021, the export volume ratio of CPO raw materials to downstream products will reach 9.27 percent as compared to 90.73 percent, while during the 2016-2020 period, the average ratio of exports of raw materials to downstream products reached around 20 percent as compared to 80 percent.

Ardika urged players of the palm cooking oil industry to further improve their quality, innovation, and competitiveness through research and development activities.

The government has readied a fiscal incentive facility in the form of super tax deduction, with a maximum gross income reduction of 300 percent for those conducting research and development activities in Indonesia in order to continue to increase the downstream products of palm oil.


Related news: Gov't to provide cooking oil at Rp14,000 per liter


Manager Quality Assurance (QA) & Quality Control (QC) of PT Salim Ivomas Pratama Tbk (SIMP) Christian Suripto highlighted his side's readiness to support the government's program in providing products of palm cooking oil at affordable prices to meet the needs of the community.

One of the efforts made by the company is to simplify the distribution flow of palm cooking oil from factories, warehouses, distributors, and retailers, so that the cost of shipping goods can be reduced, which in the end will ensure the availability of palm cooking oil at an affordable price to the public.

"We supply products of palm cooking oil directly to minimarkets. Our goal is to shorten the distribution channel as well as to equalize supply. Thus, the price can be equal to all. We also pay attention to the need for affordable prices at traditional markets. In fact, we make the most of the development of e-commerce," he stated.

Until December 2021, SIMP had distributed 775 thousand liters of packaged cooking oil under the price stabilization program.


Related news: Trade Minister asked to maintain cooking oil price stability

General Manager of PT Sinar Mas Agro Resources and Technology Tbk (SMART) of Marunda Unit, Agus Widjaja highlighted the company's commitment to continuing to support government programs for meeting the needs of cooking oil for the community.

"We will participate with products that have met the Indonesian National Standard (SNI) requirements, and we have also readied matters related to implementation of the government program, with the distribution of palm cooking oil reaching as much as five million liters per month," he remarked.

PT SMART is optimistic that production operations of palm cooking oil factories, located in Bekasi and Surabaya, can meet the government's program for providing products of palm cooking oil at affordable prices

"Despite being in the midst of a pandemic, the productivity of our palm cooking oil factory is maintained, the supply of raw materials in the form of CPO is also still smooth, and we are also continuing to implement health protocols at the factory according to the Circular Letter of the Minister of Industry on the Operational Permit for Mobility of Industrial Activities (IOMKI)," he noted.

Until December 2021, PT SMART had participated in the price stabilization program by distributing 600 thousand liters of packaged cooking oil.


Related news: Gov't working to maintain productivity of palm cooking oil: official


Related news: West Java commences program to provide affordable cooking oil

Translator: Sella P, Azis Kurmala
Editor: Fardah Assegaf
Copyright © ANTARA 2022