KSP: Cooperative CPO Mills Must Improve Farmers' Welfare
Presidential Chief of Staff (KSP) Dudung Abdurachman has stated that the development of oil palm cooperatives, including through the construction of crude palm oil (CPO) processing mills, must have a real impact on improving the welfare of their member farmers.
The statement was made while attending the inauguration of a CPO processing mill managed by the Village Unit Cooperative (KUD) Sejahtera in Musi Banyuasin Regency, South Sumatra, on Wednesday.
“There must be an impact after the cooperative establishes the palm oil mill. The welfare value for members must be increasingly higher,” said Dudung.
According to him, cooperatives must not be formed merely as organisational vehicles, but must develop into business entities capable of providing economic benefits to their members.
He assessed that the construction of the CPO mill by KUD Sejahtera shows that cooperatives are beginning to expand their business activities into the downstream sector, having previously been more engaged in savings and loan activities and trade.
According to him, the development of cooperative businesses in the downstream sector is in line with President Prabowo Subianto’s directive for economic growth and turnover to develop further from the regions, particularly villages.
He also mentioned that the future development of cooperatives will not be limited to the palm oil sector. The government, he said, will also encourage the downstream development of other commodities in South Sumatra, including coffee in Pagar Alam.
Dudung also reminded that the existence of the palm oil mill managed by KUD Sejahtera must truly bring about change for member farmers.
Dudung, together with Minister of Cooperatives Ferry Juliantono, inaugurated the CPO processing mill owned by KUD Sejahtera in Musi Banyuasin Regency on Wednesday, which is targeted to become a model for cooperative-based palm oil downstreaming to be replicated in other regions.
The mill, with an investment value of around Rp100 billion, has a processing capacity of up to 45 tonnes of fresh fruit bunches (FFB) per hour.
The FFB supply is obtained from oil palm farmers who are also cooperative members. Regarding the price received by farmers from the sale of FFB, it has been set at the outset, so there is certainty of the selling price.
The CPO products currently produced are marketed to a number of industrial partners, one of which is Wilmar Group Palembang.