Jakarta, IO – President Joko “Jokowi” Widodo inaugurated the red edible oil factory in Deli Serdang, North Sumatra, Thursday (14/3). Operated by the farmers themselves, this is the first of its kind in Indonesia.
Jokowi lauded the factory as a successful example of downstreaming because by processing oil palm independently, farmers no longer need to sell fresh fruit bunches (FFB), per Detikcom. They can now use the factory to directly produce palm oil, generating added value.
“This is what we call downstreaming. Don’t sell FFB, don’t sell CPO, if you can make finished goods like this, this is very good. We want the added value to be generated here domestically,” said Jokowi.
Jokowi explained that Indonesia currently has 15.3 million hectares of oil palm plantations, of which 6.2 million hectares (40.5 percent) belong to smallholder farmers. The existence of this red edible oil factory will provide direct benefits for palm oil farmers.
“Therefore, we are building a red edible oil factory, this is the first of its kind and we hope it can provide good added value for palm oil farmers,” said Jokowi.
Red edible oil or refined palm oil is a product of crude palm oil (CPO) which goes through minimal refining. This oil has a strong aroma and has a striking bright color that comes from the natural color of the oil palm.
During the production process, red edible oil does not go through a ‘bleaching’ process like ordinary palm cooking oil, so the color remains reddish. Its nutritional content is also considered intact. Price-wise, Jokowi believes that red edible oil products can compete with the existing products in the market. (un)