PALMOILMAGAZINE, JAKARTA – The crude palm oil (CPO) sector in Indonesia, a key industry, has been grappling with significant challenges in recent years. Sadino, an academic from the Faculty of Law at Universitas Al-Azhar Indonesia, emphasizes the necessity of establishing robust regulations and legal frameworks to foster the growth of this sector.
A crucial point highlighted by Sadino is the importance of achieving a nationwide consensus on the role of palm oil industries in Indonesia’s economy. These industries not only contribute substantially to the country’s revenue but also generate employment opportunities for thousands of individuals throughout the supply chain.
Hence, it becomes imperative for the government to recognize and safeguard the interests of both the palm oil industries and the people they serve.
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Sadino also mentioned the basic different and motivation between private and the government sector. The private would get economic profits while the government should also consider the public interests. Such as, deliver subsidy in the form of bantuan langsung tunai. That is why it needs to respect every principle in cultivating, operating, and managing palm oil industries by private and government sectors.
In this perspective, Sadino also criticized the government delivering sanction to private company (ies) that was based on Badan Pengawas Pembangunan dan Keuangan (BPKP) audited. He thought, such sanction should not be sentenced to the private sectors because they have basic to get different assessment with the government. The private’s profit and loss – audit should actually be conducted by the public accountant.
“The private sectors should get profits in doing business while the government should service the people, for instance, by delivering subsidy in the form of bantuan langsung tunai to maintain the public interests run well,” he said, as in the official statement to Palmoilmagazine.com, Tuesday (19/9) in Jakarta.
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Besides, Sadino reminded that when there is a claim that the country significantly got losses such as in palm cooking oil refraction debts that reached up to 6,47 trillion, the government should prioritize to pay the debt for retailer companies. The failure to pay the debt would raise serious issue in palm cooking oil sugrly in this country.
About the policy published by Ministry of Environment and Forestry in reforestation fund and forest resource provision for palm oil plantation in forest regions, Sadino thought, it is not normal. The regulation should be clarified and revised because palm oil plantations (in the forest regions) do not take for advantage the wood from forest production permit.
“Palm oil plantations do not take for advantage wood from forest production permit. This is weird if palm oil plantations are obliged to pay non-tax revenue in the form of reforestation fund and forest resource provision,” Sadino said.
He also told that the two would be available for the companies that operate in forest resource business and take advantage from forest production permit. (T2)
