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Jakarta Post
The Jakarta Post
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State-owned plantation holding company establishes cooking oil factory

  • News Desk
    News Desk

    The Jakarta Post

Jakarta | Tue, December 5, 2017 | 11:04 am
State-owned plantation holding company establishes cooking oil factory An oil palm plantation in Dumai, Riau. (Antara Photo/Rony Muharrman)

State-owned plantation holding company PTPN III has established a cooking oil factory that will process palm oil produced by the company, said PTPN III corporate secretary Furqan Tanzala as reported by on Monday.

The factory, which is still under construction, is located in North Sumatra and is projected to process crude palm oil (CPO) produced by PTPN III plantations in nearby areas, he said.

The factory is expected to begin production in late 2018.

The company would produce an estimated 1.97 million tons of CPO in December this year from 8.91 million tons of fresh fruit bunches, Furqan said.

He said the factory would have a capacity of 600,000 tons of cooking oil per year for the domestic market. “The cooking oil will be in plain packages and will mainly be for the domestic market,” he said.

The government has encouraged private cooking oil producers to distribute their products in plain packages to make their products affordable for low-income households.

It has also required that cooking oil producers set aside 20 percent of their products for the local market and set a price ceiling of Rp 11,000 (81 US cents) per liter. (bbn)

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