Remarks of President of the Republic of Indonesia at the Inauguration Ceremony of Refined Palm Oil Factory, Deli Serdang Regency, North Sumatra Province, March 14, 2024

Bismillahirrahmanirrahim.

Assalamuálaikum warahmatullahi wabarakatuh.
Good Afternoon,
May prosperity be upon us all.

Distinguished Minister of Public Works and Public Housing, Minister of Cooperatives and Small and Medium Enterprises;
Distinguished Governor of North Sumatra Province, Regent of Deli Serdang Regency, CEO of PTPN III, Palm Oil Farmers;
Ladies and Gentlemen.

Our country, Indonesia, has 15.3 million hectares of palm oil plantations, 40.5 percent of which belong to farmers. It means that there are 6.2 million hectares of land owned by farmers. We aim to generate the value added for domestic products. To that end, we have built the first refined palm oil factory and it is expected to generate the value added for palm oil farmers, especially those who join cooperatives. We hope that it can prevent price fluctuation of fresh fruit bunches since we produce finished goods, namely refined palm oil.

First, I am glad that the price of refined palm oil is lower than the price of cooking oil in the market. It means that this product can compete in the market, and the price is competitive.

Second, I am also glad that the vitamins in refined palm oil can be preserved, including Vitamin A, Vitamin E, and other nutrients. Some chefs have tried the oil, and they said, “Sir, this refined palm oil is different; it is tastier and is more nutritious.” I suggest that you try this oil. I will also buy it and try it later.

If you buy refined palm oil, it means that you are supporting the marketing of this product. The refined palm oil factory, with a production capacity of 10 tons of CPO (crude palm oil) per day, is expected to produce around 7 tons of refined palm oil every day. We hope that there will be many buyers so that we can generate good value added.

Third, this is part of industrial downstreaming. We don’t need to sell fresh fruit bunches or CPO after we produce finished products.

That concludes my remarks on this auspicious occasion. By saying bismillahirrahmanirrahim, today I officially inaugurate the Pagar Merbau refined palm oil factory in Deli Serdang Regency, North Sumatra Province.

I thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh.

(RI/MUR)