PalmCo Accelerates Cooking Oil Distribution to Eastern Indonesia via New Surabaya Packaging Facility

PT Industri Nabati Lestari (INL), a subsidiary of PT Perkebunan Nusantara (PTPN) IV PalmCo and PTPN III (Persero), officially began operating a cooking oil packaging facility at the Kalimas Port area, Tanjung Perak, Surabaya, East Java, on Friday, 5 June 2026.

Jatmiko K. Santosa, President Director of PTPN IV PalmCo, stated that the facility is expected to accelerate the supply of cooking oil to Eastern Indonesia by shortening the distribution chain to Kalimantan, Sulawesi, Maluku, and Papua. Previously, distribution to these regions was handled from processing plants located in the Sei Mangkei Special Economic Zone (SEZ) in North Sumatra.

“With this new model, cooking oil will be shipped in bulk to Surabaya to be subsequently packaged and distributed to its destination regions,” Jatmikmo said in a statement on Saturday, 6 June 2026.

He explained that this initiative is part of the company’s strategy to bring distribution points closer to key markets in Central and Eastern Indonesia. Surabaya was selected due to its strong port connectivity with various regions in Eastern Indonesia, enabling faster goods movement and improved supply chain efficiency.

“Previously, products were shipped 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,” Jatmiko added.

He noted that such efficiency efforts are crucial, as logistics costs remain a major challenge in national food distribution. For essential commodities like cooking oil, high shipping costs often impact consumer prices, particularly in island regions far from production centres.

As one of Indonesia’s largest ports, Tanjung Perak serves as a vital distribution hub for the eastern region. Surabaya’s geographical position, being closer to target markets than North Sumatra, allows for shorter delivery times and more stable supplies. For INL, this new facility represents a strategic step to strengthen market penetration outside of Java, tapping into the growing household and industrial food demand in Eastern Indonesia.