Hot oil immersion drying (HOD:)) or the "fry-dry" process is a method of Coconut od extraction which involves grating and then drying the freshly cut coconut kernel by immersing it in hot coconut oil. The dried residue is subsequently removed from the hot oil, drained and passed through a screw press where the oil is extracted under pressure leaving a dry cake.  The process is indigenous to parts of Indonesia (West Sumatra, North Sumatra and North Sulawesi) and is currently practised all over the country, especially in medium- and large-scale operations. Coconut oil produced by the HOID method at both the small and large scale has a distinctive coconut flavour and can be used directly as cooking oil (without chemical refining). In certain areas the "HOID oil" is sold at prices above that of refined palm oil. It is only Rp. l 00 up to Rp. 200 per k& cheaper than refined coconut oil.  As part of a wide programme of work jointly-funded by the Common Fund for Commodities and the UK Government's Overseas Development Administration on improving small-scale extraction of coconut oil, ERDABI and NRI have carried out a detailed study of the process. Based on a survey and a preliminary techno-economy evaluation of the process, in experimental HOM process plant with a throughput of 2 tonnes per day was field tested in Pontianak, West Kalimantan. These trials showed that the factory is financially viable with an IRR of 18.5 % and a NPV of Rp 40,249,000. A financial analysis of the process has shown that its viability is most sensitive to the price of raw material, price of oil and oil yield. This highlights the importance. of the design and optimal operation of the system to minimise oil losses.

This paper provides a brief description of, and information on: the HOID process and related process equipment (Section II); quality, consumer preference and shelf-life of coconut od (Section IH); and market for the HOED oil (Section IV) in relation to other oils on sale in Indonesia. It also briefly outlines a financial analysis of HOID process tested in West Kalimantan (Section V). 

There is considerable scope for the introduction and application of the technology within Indonesia at the Larger scales of operation - particularly where it will be used as an alternatif to oil from copra for refining. However the viability of the process is site-specific.