The KUD Sejahtera village unit cooperative in Musi Banyuasin Regency,\nSouth Sumatra, has built a crude palm oil (CPO) processing plant with an\ninvestment of around Rp100 billion, which is targeted to become a model\nfor cooperative-based palm oil downstreaming in other regions.<\/p>\n
Cooperatives Minister Ferry Juliantono said the government is\nencouraging the construction of CPO mills by cooperatives to increase\nadded value while strengthening the bargaining position of oil palm\nfarmers.<\/p>\n
\u201cWe deliberately intend, together with KUD Sejahtera, to make this\npalm oil mill a new example, a role model that we will replicate in\nother regions,\u201d Ferry said at the inauguration of the KUD Sejahtera CPO\nmill in Musi Banyuasin Regency, South Sumatra, on Wednesday.<\/p>\n
According to him, the government has encouraged palm oil cooperatives\nin various regions to follow the KUD Sejahtera model by entering the\nprocessing sector, so that cooperatives do not only act as collectors of\nfresh fruit bunches (FFB).<\/p>\n
Ferry said PT Agrinas Palma Nusantara has received registrations from\naround 20 cooperatives interested in establishing CPO mills.<\/p>\n
In addition, he said the Ministry of Cooperatives together with the\nRevolving Fund Management Institution (LPDB) has also received\napplications from two oil palm farmer cooperatives wishing to build CPO\nmills.<\/p>\n
\u201cThe hope is that CPO mills like this, owned by cooperatives, can be\nestablished in all palm oil centres in Indonesia,\u201d he said.<\/p>\n
Meanwhile, KUD Sejahtera Chairman Thamrin said the investment in the\nmill construction reached around Rp90 billion for the factory\nfacilities. With additional infrastructure and land, the total\ninvestment reached around Rp100 billion.<\/p>\n
He said the financing for the mill construction came from bank loans,\nmember capital, as well as capital participation from the community and\nbusiness actors around the cooperative.<\/p>\n
Thamrin said the mill has a processing capacity of up to 45 tonnes of\nfresh fruit bunches (FFB) per hour.<\/p>\n
According to him, the existence of the mill provides added value for\nmember farmers because the cooperative can provide certainty of FFB\nabsorption while opening opportunities for members to obtain a share of\nprofits from the palm oil processing business.<\/p>\n
KUD Sejahtera currently has 1,536 members with a total of\nmember-owned oil palm plantations managed by the cooperative reaching\naround 3,074 hectares.<\/p>\n
Around 76 percent of the mill\u2019s raw material needs are supplied from\nKUD Sejahtera member plantations. Meanwhile, the supply shortfall to\nsupport mill operations is met from FFB from farmers around the mill who\npartner with the cooperative.<\/p>\n
For marketing, Thamrin continued, KUD Sejahtera\u2019s CPO production is\ncurrently not intended for direct export. The product is marketed to\nindustrial partners, one of which is Wilmar.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/kud-sejahtera-builds-cpo-mill-with-rp100-billion-investment-1786524823", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }