Commission VI: PFMA Funds Dominant for Biodiesel, PTPN, the Largest Oil Palm Plantation Owner, Has Not Received Maximum Benefits

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Member of Indonesian Legislators, VI Commission, Rieke Diah Pitaloka in the hearing with PTPN Holding and Perhutani, Tuesday (25/6/2024). Photo by: Special

PALMOILMAGAZINE, JAKARTA – Commission VI Indonesian Legislators that deals with industries, investment, and business competition did hearing with PT Perkebunan Nusantara (PTPN) III (Holding Perkebunan) and PT Perhutani on Tuesday (25/6/2024). In the event, one member of Commission VI, Rieke Diah Pitaloka discussed about portion of fund in Palm Oil Plantation Fund Management Agency (PFMA) that tended to pay the gap price in palm oil biodiesel.

In facts, PFMA was established based on Chapter 38 Laws Number 39 / 2014. The fund derived from crude palm oil (CPO) and its derivatives supporting fund.

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Rieke said, BPPDKS is regulated by the Regulation of Minister of Finance (RMF) Number 01 / 2015 on 10 June 2015. The main goals of the fund should be to encourage research and development, promotion, and palm oil industrial development. The others were to escalate infrastructures, biodiesel development, replanting program, and escalate numbers of business partners, exports, and educate the people about palm oil plantations.

Also Read: Indonesian Legislators Visit PTPN IV to Evaluate Palm Oil Industry Development

“In the practices, most of the fund in PFMA was used to support biodiesel production. The fund was distributed for biodiesel producers as the incentive to balance the price gap between biodiesel and diesel price in the markets,” she said in the hearing that Palmoilmagazine.com watched, Thursday (27/6/2024).

She continued, the fund was distributed for big scale (palm oil) industries with the note, three biggest ones significantly got it. About 91,3% of the total fund about Rp 176,1 trillion in 2015 – 2020 was distributed for biodiesel program. “But, only small numbers of the fund or about 0,30 – 0,27% was allocated to develop smallholders’ replanting program and education,” she said.

Rieke reminded, PTPN Holding Perkebunan that has the largest palm oil plantations, should be actually got the biggest numbers of the fund but did not get it maximally. That is why, it would be significant to have accurate data and transparent fund management. These should be the focus namely to support Commission VI and other related instances to confirm the effective and sustainable programs in PFMA.

“We support the Great Attorney to confirm that the fund is efficiently and clearly managed and should reveal every harmful practice potential,” she said. (T2)

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