Government Bolsters Digital Systems in Palm Oil Industry to Mitigate Losses

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CPO. Photo by:

PALMOILMAGAZINE, JAKARTA The Ministry of Maritime and Investment Coordination announced the successful prevention of revenue losses in the coal sector through the implementation of the digital system known as the Mineral and Coal Information System (Simbara).

Extending beyond the coal industry, the government has also engaged with the crude palm oil (CPO) sector to achieve similar outcomes.

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According to M. Firman Hidayat, the Deputy in Maritime Resource Coordination at the Ministry of Maritime and Investment, the digital monitoring system for CPO commenced this year.

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Previously, the palm oil taskforce encouraged self-reporting by palm oil plantation companies through the Plantation Licensing Information System (Siperibun). As a result, the number of registered companies increased significantly from 959 to 2,139, all of which are now digitally connected.

“Besides the coal sector, we would also do the palm oil sector. We have been doing it since the midst of this year,” Firman said in an online press conference on Friday, December 22, 2023.

Digitalization delivered positivity to its governance and revenue. Firman said that every piece of data gathered would be and can be used by every ministry or institution to improve governance.

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For example, though a company has been registered with the General Directorate of Tax, the width of its reported area is narrower than that of the company that was registered in Siperibun. But with digitalization, the General Directorate now has certain data.

He also explained the advantages of data expansion. The first information was not recorded in the directorate, but after having Siperibun, it would enable the directorate to effectively monitor the companies (to pay tax). This contributes not only to getting revenue but also to solving issues in the palm oil sector that relate to forest areas.

Though commodity prices, including CPO, get cheaper this year, digitalization in Simbara, Siperibun, and others would prove to be effective ways to minimize potential losses and corruption. (T2)

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