PALMOILMAGAZINE, JAKARTA – The General Secretary of the Indonesian Palm Oil Association (IPOA), M. Hadi Sugeng, recently expressed concern about the progress of the palm oil industry in Indonesia.
Despite Indonesia being the world’s largest palm oil producer and exporter, there is a growing imbalance between global palm oil consumption and production in the country, both in terms of crude palm oil (CPO) and palm kernel oil (PKO).
Hadi Sugeng also noted that palm oil production in Indonesia has remained stagnant in recent years at 51 million tons, and exports have been on the decline.
“Although export volumes have increased this year, the overall value has decreased due to falling prices,” Hadi Sugeng made these remarks during the Gala Dinner of the 25th Congress of the Indonesian Journalists Association (PWI), held at Gedung Sate in Bandung on September 24, 2023.
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In fact, Indonesia now masters about 58% vegetable oil markets and more than 40% palm oil markets in the globe. The major issues in Indonesia’ palm oil commodity are overlapping policies and many instances involve in publishing policies.
Hadi Sugeng thought, at least there are tens government’s institutions that published policies in palm oil sector from the regional to central governments. The real sample he said was about forest region identification. Many palm oil plantation companies got business rights or smallholders got certificates on their land. But what the companies and smallholders got, are now categorized as forest regions both by governors’ recommendations and other related instances.
“After we calculated, at least, 31 government’s instances published policies, starting from the regional to central governments,” he said.
Actually, he continued, the stakeholders or smallholders that got business rights or ownership certificate must have the legal certainty because every process (to get the rights and certificate) involved many related instances and considered available spatial.
To solve these issues, the Government of Indonesia implements Government Regulation in Lieu of Law Number 2 / 2022 about Cipta Kerja. It regulates to pay administrative fine for every stakeholder and should return plantations in forest regions after one cycle of planting.
Meanwhile Treasurer of PWI, Muh. Ihsan told his support for palm oil industries. He thought the sector is very strategic for Indonesia, contributing significantly for the social and economy, helping to welfare the people of Indonesia. (T2)
