Government Boosts Palm Oil Industry Governance and Infrastructure

Palm Oil Magazine
Doc. Sawit Fest 2021 / Saddam Hussen

PALMOILMAGAZINE, JAKARTA – Palm oil as one mainstay commodity in Indonesia gets special attention from the government to confirm and improve its industries and infrastructures.

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Vice Minister of Finance, Suahasil Nazara at Palm Oil Profit Sharing Technical Guidelines and Socialization Kickoff, emphasized that it is important to escalate plantation governance, the permit, plantation data, developing infrastructures to support palm oil product mobility.

In the event, Nazara said that palm oil plantation permit both cultivated by the smallholders as individuals and corporates, should be well managed. The government is improving plantation area data about palm oil through Sistem Informasi Perizinan Perkebunan (Siperibun) application that Ministry of Agriculture manages.

Also Read ; A Critical Review of Government Regulation Number 38/2023: Assessing Palm Oil Plantation Profit Sharing Policies

Siperibun is about to reinforce plantation permit governance within database, free from corruption, reinforce coordination among ministry/institution in national scale and regional levels. This is hoped to escalate the easiness of doing business in plantation sectors and optimize plantation business as the main sector of economy in national scale.

“When we look at the data in Siperibun, we would connect to all of you, dear sirs in regional governments. Do you know every company in your regions? If you don’t, please re-check. In the central government, we would check,” he said, as quoted from the official page of Ministry of Finance.

He also discussed about the establishment of Public Service Obligation Palm Oil Plantation Fund Management Agency (PFMA) which is part of constitutional mandate – Laws Number 39 / 2014 about Plantation. PFMA gathered fund from every planter which is known as Crude palm oil Supporting Fund (CSF). It would be used to support palm oil plantation development which is sustainable. The programs cover research and development, business promotion, industrial infrastructure development, biodiesel development, replanting, escalating business partners, exports, and people’s education about palm oil plantations.

Palm oil industries would need good transportation (ways) to get smooth distribution from the plantations to mills. He emphasized that the government also noticed the needs and claimed that palm oil profit sharing should be allocated to improve infrastructures including the ways in many regions.

“We always tell that we have to maintain the ways. We have to make sure that from palm oil industries contribute to improve ways in many regions. We designed it and the profits sharing when it was proposed, the target is about to improve infrastructures,” he said. (T2)

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