The Ministry of Cooperatives is taking a strategic step to empower the people's economy by directly involving cooperatives in the downstream sector of the palm oil industry. Minister of Cooperatives Ferry Juliantono confirmed that the inauguration of the cooperative-owned Crude Palm Oil (CPO) mill in Musi Banyuasin, South Sumatra, is scheduled to take place between late July and early August.
The mill, which will manage 3,100 hectares of land, is designed with a production capacity of up to 60 tons per hour. This project is projected to become a national role model for synergy between cooperatives and PT Agrinas Palma Nusantara, aimed at ending farmers' dependence on private corporations in processing raw palm oil materials.
Ferry emphasized that this initiative is a follow-up to President Prabowo Subianto's directive for cooperatives to have full control over the palm oil industry supply chain, from plantations to downstream products. According to him, the common irony today—where palm oil farmers themselves struggle to access cooking oil—must end by strengthening independent commerce through cooperatives.
Furthermore, the government aims for this mill not to stop at CPO production alone, but to be capable of processing derivative products such as red palm oil or cooking oil. These products are planned to be distributed through the Merah Putih Village Cooperative network, ensuring that the economic benefits can be directly felt by the broader public.
