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Public Private Alliances for Piloting Palm Oil

Fortification with Vitamin A in Indonesia

The views expressed in this presentation are the views of the author(s) and do not necessarily reflect the views or policies of the Asian
Development Bank (ADB), or its Board of Directors or the governments they represent. ADB does not guarantee the source,
originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view
presented, nor does it make any representation concerning the same.

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-Private Dialogue
Public- G
and Investment to: O
• Integrate public health D
activities with business H
models for efficiency and E
sustainability A
• 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

• average consumption of unbranded oil


• 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
Private Partners Public Partners

KFI: effectiveness trial Ministry of Health:

Oil distribution company:
fortification and distribution National Food and Drug
Administration: QA
Pharmaceutical Industry :
supply of retinol and technical Center for Food and Nutrition
training Research: Monitoring

Oil industry: QC/QA, marketing Ministry of Trade: National

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
Scaling--Up Oil Fortification
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

GAIN: Up-scaling oil fortification through

production, distribution, QA/QC