President Joko “Jokowi” Widodo inaugurated the first Crude Palm Oil (CPO) processing factory in Deli Serdang, North Sumatra, on Thursday, March 14, 2024. The factory establishment was an initiative of the Ministry of Cooperatives and Micro, Small and Medium Enterprises.

This new factory, which is put under the auspices of the State-owned Enterprises Ministry’s Plantation Holding Company PT Perkebunan Nusantara III (PTPN), is attempting to increase the variety of palm oil products.

This factory is the first refined palm oil pilot factory in Indonesia to produce new products of red edible oil. This factory will be able to process 10 tons of CPO per day and can produce up to 7 tons of red edible oil.

"We hope to provide good added value for oil palm farmers, especially those in the form of cooperatives," Jokowi said, while citing that the price of refined palm oil is cheaper than the price of cooking oil on the market.

Teten Masduki, Minister of Cooperatives and Micro, Small and Medium Enterprises, said that currently more than 40 percent of oil palm plantation in Indonesia is owned and managed by independent farmers. However, it is very unfortunate that for decades oil palm farmers have been faced with the problem of the fluctuating and uncertain price of fresh fruit bunches (FFB).

"This is not a small amount, it is a large amount. Someone has to buy this and we hope it will provide good added value," Jokowi said.

According to Jokowi, refined palm oil products are the result of downstream processing of oil palm fruit. He said the use of refined palm oil will become a trend in the future due to its high content of nutrients, such as Vitamin A and Vitamin E, as well as its relatively cheaper price.

Refined palm oil is a derivative product from CPO which, after being refined, does not continue with further processes. Then, during the production process, refined palm oil does not go through a refining or bleaching process like ordinary palm cooking oil. This oil has a striking bright color and a strong aroma that comes from palm oil which is dark red in color. 

According to the Palm Oil Research Center (PPKS), refined palm oil still maintains its phytonutrient compound content. These contents include carotene as a source of vitamin A, tocopherol and tocotrienol as vitamin E, and squalene.

Therefore, refined palm oil has the potential to be used as a functional food, one of which is as an anti-stunting ingredient. Oleic acid and linoleic acid functioned for the formation and development of the brain, transportation, and metabolism in children.

Apart from that, refined palm oil is also suitable for use for stir-frying food, dressings, raw materials for margarine, and so on.

Teten said that red edible oil could be a healthy alternative to cooking oil because it contains natural palm oil compounds, and is affordable.