Red cooking oil requires a new factory and new technology that will produce new product. This is different from cooking oil, which has a clear yellowish color, whereas red cooking oil is yellowish redJakarta (ANTARA) - Minister of Cooperatives and Small, Medium Enterprises (SMEs), Teten Masduki, estimates the price of red cooking oil to be much cheaper than that of cooking oil in general.
"The price must be lower than that of general cooking oil, maybe at around Rp9,000 per kilogram. It will be cheap and serve as a solution for the community and farmers. It is also healthy and safe for consumption," Masduki noted here, Friday.
Construction of the red cooking oil factory is said to become President Joko Widodo's affirmative policy to improve the welfare of palm oil farmers and improve the distribution of these commodities.
Related news: Red palm oil to only be produced by cooperatives: Minister
The Palm Oil Research Center (PPKS) is also involved in planning the Detailed Engineering Design (DED) or the building technical design document requested by the president to be completed by the end of August 2021.
After completing the DED, the processing machine was immediately produced to build a mini Crude Palm Oil (CPO) factory and a red cooking oil factory to achieve the production target in January 2023.
Masduki reported that some 12 cooperatives were ready to build red cooking oil factories, including from North Sumatra, Riau, Jambi, Lampung, Central Kalimantan, South Kalimantan, and West Kalimantan. This readiness ranged from land availability to financial matters.
"Red cooking oil requires a new factory and new technology that will produce new product. This is different from cooking oil, which has a clear yellowish color, whereas red cooking oil is yellowish red,” the minister explained.
Related news: President reviews progress of red palm cooking oil research in Medan
He is optimistic of red cooking oil being absorbed through cooperative members and restaurant networks and be distributed to two sub-districts around the factory to reduce the logistics costs.
Furthermore, his side will cooperate with banks, the Palm Oil Plantation Fund Management Agency (BPDPKS), the Cooperative Fund Management Institute, and Micro, Small, and Medium Enterprises (MSMEs) to disburse funds for construction of the red cooking oil factory.
The investment value disbursed for construction of the red cooking oil factory amounts to Rp23 billion to produce 10 tons of the commodity, with a return on investment of 4.5 years.
“Factory construction should not encounter any obstacles. In fact, the president is currently encouraging the strengthening of MSMEs, including bolstering the industry. This is part of the industry," he concluded.
Related news: Farmers pleased red palm cooking oil increased product value: minister
Related news: Red palm cooking oil cheaper than RBD palm oil: minister
Translator: M Baqir Idrus A, Resinta S
Editor: Fardah Assegaf
Copyright © ANTARA 2022
