Palm Oil Stakeholders Urge President Prabowo to Establish Specialized Agency for Governance

Palm Oil Magazine
Palm Oil Stakeholders Urge President Prabowo to Establish Specialized Agency for Governance. Sendy Vanilla. Photo by: Sawit Fest 2021 /

PALMOILMAGAZINE, JAKARTA – Farmers and business players in the palm oil sector are urging President Prabowo Subianto to immediately form a special body tasked with improving palm oil governance in Indonesia.

This urge came up in a discussion entitled “Kupas Tuntas Tata Kelola Sawit Berkelanjutan or Peel Through Sustainable Palm Oil Governance” held by the Forum of Agricultural Journalists (Forwatan) at the Ministry of Agriculture (Kementan), attended by Palmoilmagazine.com, in Jakarta, on Thursday (19/12/2024).

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Chairman of the Indonesian Palm Oil Council (DMSI), Sahat Sinaga, stated that President Prabowo Subianto’s vision to realize energy security could be realized through the establishment of a special agency for palm oil. “If President Prabowo has explained that we need national energy and food security, then all these problems will be resolved with the existence of a special body that has full authority to resolve palm oil governance issues, especially in the upstream sector,” Sahat said.

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Sahat also highlighted the obstacles that arise due to the many ministries and institutions that manage palm oil. “Currently, there are many different views between ministries, so that the palm oil governance problem is not resolved. With a specialized agency, these problems can be addressed effectively,” he added.

Chairman of the Plantation Division of the Indonesian Palm Oil Association (GAPKI), R. Azis Hidayat, also supported the proposal. According to him, the formation of a special body for palm oil had been agreed by the expert teams of the three presidential candidates in the previous election. In addition, the Ombudsman has proposed that public services in the palm oil sector become more focused by referring to a comparative study with Malaysia’s Palm Oil Board (MPOB).

“Currently, there are 37 ministries and institutions involved in palm oil management with different policies. This makes it difficult for diplomacy and dispute resolution, including lawsuits at the international level such as the WTO. With a specialized agency, the focus of diplomacy can be sharper,” Azis explained. He also suggested that the Palm Oil Plantation Fund Management Agency (BPDPKS) be developed into such a body because the human resources are already available.

Acting Director General of Plantation of the Ministry of Agriculture, Heru Tri Widarto, emphasized the importance of palm oil management in accordance with regulations, including the socialization of the obligations of business actors according to MOA No. 18/2021. The Directorate General of Plantation is also targeting the development of e-STDB (Electronic Cultivation Registration Certificate) up to 250 thousand hectares by 2025 to meet EU export standards.

“In addition, the People’s Palm Oil Replanting (PSR) program will also be continued with a target of 120,000 hectares by 2025, including official and partnership channels. We are trying to ensure that all programs are running to support the sustainability of the palm oil sector,” Heru concluded.

The full support from associations and business players is a positive signal for the acceleration of the formation of a special body for palm oil, which is expected to be a solution to various palm oil governance problems in Indonesia. (P2)

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