New Packaging Facility in Surabaya to Accelerate Cooking Oil Distribution to Eastern Indonesia
PT Industri Nabati Lestari (INL), a subsidiary of PT Perkebunan Nusantara (PTPN) IV PalmCo and PTPN III (Persero), has commenced operations at a cooking oil packaging facility located in the Kalimas Port area, Tanjung Perak, Surabaya, East Java. The presence of this facility is expected to accelerate the distribution of cooking oil to Eastern Indonesia while reducing logistics costs by up to 40 per cent.
Jatmiko K. Santosa, President Director of PTPN IV PalmCo, stated that the packaging facility, which was inaugurated on Friday (5/6), is part of the company’s strategy to bring distribution points closer to key markets in Central and Eastern Indonesia. Previously, packaged cooking oil was shipped directly from processing plants in the Sei Mangkei Special Economic Zone (SEZ) in North Sumatra. Now, products will be shipped in bulk to Surabaya to be packaged and subsequently distributed to Kalimantan, Sulawesi, Maluku, and Papua.
“Previously, products were sent in packaged form from North Sumatra. By conducting packaging in Surabaya, distribution becomes more efficient and logistics costs can be reduced by up to 40 per cent,” said Jatmiko.
He explained that Surabaya was selected as the location for the new facility due to its strong port connectivity with various regions in Eastern Indonesia. This condition allows for shorter shipping times while maintaining supply availability in destination areas. According to Jatmiko, strengthening the distribution network is part of PalmCo’s transformation, which focuses not only on the production of crude palm oil (CPO) but also on expanding downstream businesses that provide higher added value.
“PTPN has been tasked to serve as a reliable state instrument in maintaining supply availability and the stability of the national palm oil industry. Therefore, we continue to strengthen downstreaming and distribution so that products can reach the public more effectively,” he added.
Distribution efficiency is considered vital as logistics costs remain a major challenge in the national food supply chain. For essential commodities such as cooking oil, high shipping costs often impact retail prices, particularly in island regions far from production centres.
The operation of the packaging facility is carried out through a partnership with PT Lestari Jaya Indonesia Maju (LJIM). Commissioner of PT LJIM, Mayjen TNI (Ret.) Gamal Hary’o Putro, noted that the initial distribution from the new facility has received a positive market response.
“We see a significant market demand. Therefore, distribution will continue to be strengthened alongside increasing operational capacity and market absorption,” said Gamal. He added that distribution capacity will be increased gradually, with a primary focus on ensuring the smooth supply of cooking oil to various regions in Central and Eastern Indonesia.
PalmCo believes that the scheme of shipping cooking oil in bulk from North Sumatra to be packaged in Surabaya not only accelerates distribution but also enhances the company’s operational efficiency and strengthens product competitiveness in the market. By establishing a distribution system closer to target regions, the company hopes to maintain a steady supply of cooking oil, further improve logistics efficiency, and support national supply chain resilience amidst the growing food needs of the Indonesian population.