Public Private Alliances for Piloting Palm Oil

Fortification with Vitamin A in Indonesia

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ADB-UNICEF Regional Workshop

The Role of Non-State Providers in Delivering Basic
Social Services for Children
19-20 April 2010

Barbara Lochmann
South East Asia Department
20 April 2010
 Public--Private Alliances for Health
Public

Public-Private Dialogue
Public- G
and Investment to: O
O
• Integrate public health D
activities with business H
models for efficiency and E
sustainability A
L
• Integrate business models T
with health objectives for H
increased impact on GOOD BUSINESS
micronutrient deficiencies
 Why Oil Fortification?
• Vitamin A deficiency is still a public
health problem (VAD prevalence in
children 5-15 yrs about 53%)

• Indonesia is the largest producer of

palm oil

• about 100% of household consume

palm oil, out of which 70% are
unbranded (Feasibility Analysis
KFI/MI,2005)

• average consumption of unbranded oil

9kg/capita/p.a.

• consumption variation between poor

and rich is not significant
 The Experience of the Enriching Lives of the
Urban Poor Project (Oil Fortification in Makassar)
• Extensive advocacy for decision
makers and the private sector

• Industry needs to be engaged at

early stage
• Need scientific evidence what works
at what cost

• Initial investments for fortification

and distribution need to be borne by
the public sector

• Product acceptability of consumers

requires extensive social marketing
because of low consumer awareness
 Public--Private Alliances for
Public
Fortification
Private Partners
KFI: effectiveness trial
Oil distribution company:
fortification and distribution
Pharmaceutical Industry :
supply of retinol and technical
training
Oil industry: QC/QA, marketing
Public Partners
Ministry of Health:
Implementation/coordination
National Food and Drug
Administration: QA
Center for Food and Nutrition
Research: Monitoring
Ministry of Trade: National
standards
 Value Added
• Feasible for Government and Industry

Fortification technology easily and inexpensively
adaptable by palm oil producers ( 6 companies supply
more than 70% of the domestic market)

Regulation and quality assurance parallel to current
systems for wheat flour and salt fortification.

• Affordable Cost

Additional Rs 50 per kg (willingness to pay up to Rs 100)

• Self Targeted Distribution

Unbranded cooking oil reaches poor consumers

• Maximize Public Health Benefits

Fortified oil may be utilized in safety net and or food aid
programs
 Scaling--Up Oil Fortification
Scaling
Indonesia plans to mandate Vitamin A
fortification for cooking oil by January 2011

ADB: Nutrition Improvement through

Community Empowerment Project provides
investments to scale-up (oil) fortification,
regulatory framework and social
marketing/communications for fortification

GTZ/BASF: Strategic Alliance for the

Fortification of Oil provides technical
expertise in production, marketing and
distribution

GAIN: Up-scaling oil fortification through

production, distribution, QA/QC