InfoSAWIT, SAMARINDA – East Kalimantan is a province well known to have many natural resources, encouraged to get palm oil downstream sector development. This policy is part of palm oil plantation development strategies and the solution for independent smallholders to get additional values from their plantations.
Until 2022, palm oil plantations in the province laid about 1.411.861 hectares, fresh fruit bunch (FFB) production reached 19,2 million tons or equal to 3,8 million tons of crude palm oil (CPO). As the mainstay commodity, palm oil has big chance to develop palm cooking oil mini mills.
“Big private companies’ palm oil plantations laid about 972.000 hectares; the people’s plantations laid about 373.000 hectares,” Head of Plantation Agency East Kalimantan Province, Ahmad Muzakkir said in the socialization of palm oil plantation downstream development in Hotel Harris, Tuesday (10/10), as InfoSAWIT quoted from the official page of the province.
The province, through its regional Budget allocated about 12.472 hectares to ddevelop palm cooking oil mini mills. They would be in seven districts/31 sub districts, and 66 villages; would involve 206 smallholders’ group and 8.076 families. This is part of policy to support cooperation/micro, small, medium business to get active roles in developing palm cooking oil mini mills.
Developing mini mills would be the smart solution to solve two major issues, such as, the first, the cheap FFB price and purchase in independent smallholders’ level where they are so far from big mills. The smallholders should sell their FFB cheap because FFB storage is very short. By having palm cooking oil mini mills, FFB could be process to be palm cooking oil locally, creating additional values significantly and prolonging product storage.
Some regions have developed mini mills, such as in Sumatera because the province has got investment from many financial sources both from the government’s programs (Ministry of Industry, Palm Oil Plantation Fund Management Agency, Village Enterprises, such as, BUM Des Maju Jaya in Village of Suka Maju, Sub district of Putri Hijau, District of Bengkulu Utara) and others. (T2)
