For the next three months, we will prepare the construction of the (palm oil production) machine.
Jakarta (ANTARA) - State-owned agricultural company PT Perkebunan Nusantara (PTPN) will start the construction of pilot red palm cooking oil factories following the completion of the detailed engineering design (DED) by the Palm Oil Research Center (PPKS).

Cooperatives and Small and Medium Enterprises (SMEs) Minister Teten Masduki received the DED and the budget plan (RAB) for the development of the pilot factories from PPKS head Edwin Syahputra Lubis at the ministry’s headquarters here on Monday.

He said that the DED will be handed over to oil palm farmer cooperatives that are interested in operating a red palm cooking oil factory in their area to give value added to fresh palm fruit bunches (FFB) produced in their plantations.

Still, the development of the pilot factory or mini plant will be carried out by PTPN, he added.

"For the next three months, we will prepare the construction of the (palm oil production) machine. The acceleration of financing (for the project) has been coordinated by the LPDB (Revolving Fund Management Institution), banks, and BPDPKS (Palm Oil Plantation Fund Management Agency). The machine will be made by PPKS," he informed.

The pilot factories will be built by PTPN II in Pagar Merbau Sub-district, Deli Serdang District, North Sumatra Province, and by PTPN IV in the areas of Pulu Raja and Langkat, North Sumatra Province.

The minister informed that four oil palm farmer cooperatives are ready to build red palm cooking oil factories in Riau, South Kalimantan, and Central Kalimantan provinces.

According to the DED, each factory will be capable of producing 10 tons of the commodity per day -- or more than three thousand tons per year.

There are a number of advantages of using red palm cooking oil, including cheaper price, higher nutritional content, and added value for farmers from the sale of derivative products obtained from oil palm FFB, Masduki added.

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Translator: Aditya Ramadhan, Uyu Liman
Editor: Rahmad Nasution
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