During the next three months, we will prepare the construction of the (palm oil production) machine.

Jakarta (ANTARA) – State-owned agricultural enterprise PT Perkebunan Nusantara (PTPN) will start construction of pilot red palm oil plants after completion of Detailed Engineering Design (DED) by Palm Oil Research Center (PPKS) .

Minister of Cooperatives and Small and Medium Enterprises (SMEs), Teten Masduki, on Monday received the DED and Budget Plan (RAB) for the development of the pilot plants from PPKS chief Edwin Syahputra Lubis at the ministry headquarters.

He said the DED will be given to cooperatives of oil palm growers who want to operate a red palm oil factory in their area to add value to the fresh palm fruit bunches (FFBs) produced on their plantations.

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

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

The pilot plants will be constructed by PTPN II in Pagar Merbau sub-district, Deli Serdang district, North Sumatra province, and by PTPN IV in Pulu Raja and Langkat regions, North Sumatra province.

The minister informed that four palm oil grower 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 able to produce 10 tons of the goods per day, or more than three thousand tons per year.

The use of red palm oil has a number of advantages, including a cheaper price, higher nutritional content and added value for farmers through the sale of derivative products obtained from the oil palm. FFB, added Masduki.

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