PALMOILMAGAZINE, JAKARTA – In recent days, many smallholders have expressed disappointment with the government’s forthcoming publications. They believe the government may not support smallholders.
This sentiment arose from statements made by Coordinating Minister for the Economy Airlangga Hartarto and Minister of Trade Zulkifli Hasan after a meeting at the Presidential Palace. The two officials announced that the Palm Oil Plantation Fund Management Agency (PFMA) would be given new responsibilities for cocoa and coconut. They seemed to think that the PFMA had substantial funds and that cocoa and coconut smallholders would shift away from palm oil cultivation.
However, the smallholders feel this is unfair. They argue that the PFMA should not be burdened with funding other sectors, especially since smallholders already struggle to access funds from the PFMA due to restrictive policies. They believe the PFMA appears well-funded not because of a surplus but because smallholders find it difficult to access these funds.
Also Read: President Jokowi Directs PFMA to Support Coconut and Cocoa Cultivation
“The smallholders massively contribute to the country, namely in the forms of taxes, such as, value-added tax for fresh fruit bunch (FFB), export tax, and property tax. But the government minimally pays attention for the smallholders,” Chairman of Persatuan Organisasi Petani Sawit Indonesia (POPSI), Pahala Sibuea said, as in the official statement to Palmoilmagazine.com, Saturday (13/7/2024).
He thought, this could be seen from the ways to the plantations which are not good and the lack of fertilizer subsidy in palm oil plantation. In fact, this sector delivered big contribution to the Revenu. The smallholders hoped the fund in PFMA should be used to improve the smallholders’ plantation governance.
“Finance programs in PFMA for smallholders replanting program, and human resource reinforcement and development are not fully taken for advantages by the smallholders,” he said.
He thought, biodiesel subsidy program fund allocation, palm oil profit sharing, and others were not fair. The smallholders hoped the government would focus on the mandate of nowadays regulation namely about PFMA establishment. He continued the government should encourage sustainable palm oil development to realize sustainable governance well and the smallholders would get the advantages from PFMA fund
The establishment of PFMA referred to the Plantation Laws Number 39 / 2014 Chapter 93 paragraph 3 about Plantation Business Fund that Planters Conduct. It was also regulated by the Government’s Regulation Number 24 / 2015 Chapter 3 and 5 about Fund Raising to Encourage Sustainable Palm Oil Development on Strategic Plantation Commodities, such as, Palm Oil, Coconut, Rubber, Coffee, Cocoa, Sugarcane, Tobacco and the derivative products. Then Chapter 16 mentioned that Plantation Fund Management Agency could be established for one (1) strategic plantation commodity or the combination of strategic plantation commodities.
The regulations mandated to establish Plantation Fund Management Agency while Palm Oil Plantation Fund Management Agency was established from President’s Regulation Number 61 / 2015 juncto President’s Regulation Number 24 / 2016 juncto President’s Regulation Number 66 / 2018 about Palm Oil Plantation Fund Utilization and Raising.
That is why, he said, if PFMA would get other job description to deal with cocoa and coconut, this would violate the available regulations. This is from the President’s Regulation Number 61 / 2015 Chapter 2 paragraph 1 that mentioned the Fund Raising should be to encourage sustainable palm oil plantation development.
“If the President’s Regulation Number 61 / 2015 juncto President’s Regulation Number 24 / 2016 juncto President’s Regulation Number 66 / 2018 would be changed/substituted to accommodate other commodities, it should be fair which means, there should be citation from (other commodities’) exports, as regulated by the Government’s Regulation Number 24 / 2015,” Pahala said. (P2)
