The Ministry of Cooperatives and Small and Medium Enterprises (UKM) has announced that the red cooking oil factory has been actively in production since the end of last year. Ahmad Zabadi, Deputy for Cooperatives, stated that the cumulative production of palm oil-based cooking oil has reached 7.2 tons, primarily marketed in the local vicinity. The factory operates on a small-scale or mini-plan concept, restricting its current market reach. Zabadi revealed that the operational factory is situated in Deli Serdang, North Sumatra, with plans for expansion into the Riau region. The expansion strategy aims to establish additional cooking oil production facilities across the country, addressing the limitation posed by the current small-scale concept. He emphasized that there are no issues with the existing operation, and they are planning to replicate the success in several locations. The ministry is actively working on developing new production facilities, particularly in Riau.
In addition to expanding red cooking oil production, the ministry is engaged in providing support and guidance to existing factories to enhance their impact and serve as role models for sustainable palm oil production. Zabadi stressed the importance of continuous mentoring to maximize production and contribute significantly to the palm oil industry's development. Earlier, on July 18, 2022, Minister of Cooperatives and Small and Medium Enterprises, Teten Masduki, highlighted red cooking oil as a solution for farmers heavily reliant on selling fresh fruit bunches to centralized cooking oil industries in Java. Teten expressed that farmers often face difficulties in selling their fresh fruit bunches or encounter low prices due to the lack of technology for processing palm oil into crude palm oil (CPO) and cooking oil. Teten also mentioned that red cooking oil would be more affordable than commonly consumed cooking oil, with higher protein and vitamin A content, providing an advantageous alternative for consumers.
