MINISTER of Cooperatives and Small and Medium Enterprises Teten Masduki believes that the construction of a red cooking oil factory will not incur losses. Because, the factory is integrated from plantations, production (factory), to distribution in the market by obtaining a distribution permit.
“Don’t be afraid that it won’t sell, because many entrepreneurs have heard regarding red cooking oil. Among them are entrepreneurs from Malaysia,” he said as quoted from a press release, Saturday (12/7).
Teten said the government has determined that the existence of red cooking oil factories is only owned by cooperatives, not by large businesses. Therefore, professional factory management is considered important.
He also ensured that the government will provide training and assistance to cooperatives so that they are able to manage factories professionally. “If there are administrators who have professional skills, please do so. If not, recruit from outside,” said Teten.
He also hopes that the cooperative’s red cooking oil factory will be a means for palm oil farmers to move up a class. According to Teten, so far the lives of palm oil farmers have been quite good from the results of selling fresh fruit bunches (FFB).
Palm oil farmers are considered to get increased welfare by downstreaming their products. “The standard of living of farmers will increase even more if they are able to process it into downstream products,” said Teten.
He is optimistic that the construction of the red cooking oil factory in Pelalawan will be completed in no more than four months. Later, farmers will receive revolving fund financing support from LPDB KUMKM. (Z-2)
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