Palmoilmagazine.com, JAKARTA – Dwi Sutoro, Director of Perkebunan Nusantara Holding, told to Palmoilmagazine.com that sustainable palm oil is very significant because it would maintain energy and food security in Indonesia. the world would always need palm oil as the main option of vegetable oil.
Though facing export trade barrier, palm oil has many advantages to other kinds of vegetable oils. “The biggest challenges is not the market because crude palm oil (CPO) is competitive at price,” Dwi told to Palmoilmagazine.com, February 28, 2023, in Jakarta.
In the domestic level, the issues are levy and out fee (from Palm Oil Plantation Fund Management Agency/PFMA). The levy and out fee could be US$ 170/ton in total. The publication of Domestic Market Obligation (DMO) and Domestic Price Obligation (DPO), if the export quota runs in 1:6, it would cut off about US$ 50/ton.
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Dwi thought, it needs to maintain upstream sectors to support downstream sectors. “Do not let CPO business be stagnant because of the big pressure,” he said.
What the government regulates should be obeyed and implemented for business sustainability in the future, but it needs to adjust with the needs in each era.
One thing to improve palm oil governance should be from the Indonesian Palm Oil Association (IPOA), and in the future, the organization should be able to help, in three ways: first, welfare the members; second, increasing the comfort of doing business; and third, the credibility of the organization as the partner of government.
“The organization has to criticize if something has gone wrong, and if it is credible, IPOA could be the trusted partner of the government,” Dwi said.
The fourth, cooperate with the market (CPO) as complementary to the input of the organization. “It is important to escalate the roles of IPOA for its members and increase IPOA as a credible partner of government,” he said. (T2)
