CEC Suggested to Improve the Palm oil Plantation Governance

CEC Suggested to Improve the Palm oil Plantation Governance

InfoSAWIT, JAKARTA -Integrated Supply Chain Management becomes the important part in palm oil industrial management to fulfill the sustainable development principles. It is important too to prevent mismanagement issues that would make corruption.

According to trustable source to InfoSAWIT, the study that Corruption Eradication Commission (CEC) found some issues, such as: the unaccountable control and license system in palm oil plantation, the ineffective CSF control and the unoptimal tax citation done by Directorate General of Taxation.


CEC also found the ineffective citation that Palm oil Plantation Fund Management Agency (PFMA) run. It is far from the good and transparent governance because the fund management of the tax citation has special goal.


CEC also found the gap of export citation usage from palm oil companies but in the realization, it was only given to some palm oil companies. The gap, of course, would break the management of palm oil industries.


The facts showed, the usage of export citation, which is known as CPO Fund is mostly used to subsidize biodiesel reaching up to 80%. The biggest citation was enjoyed and got by big companies, such as, Grup Wilmar, Grup Musim Mas, andGrup Darmex.


The money from biodiesel subsidy that big companies got is mostly derived from CPO citation from the plantations. The big companies and the smallholders dominate palm oil areas nationally.


Because of the findings, CEC suggested the government through the related ministries and institutions, such as, Ministry of Agriculture to improve the reconciliation of the plantation business and should run  One Map Policy based on the Regulations.


Ministry of Agriculture should revise the Regulation of Secretary of Agriculture No. 98/OT.140/9/2013 in the form of Government’s Regulation and should regulate the license management based on spatial, environment, and land mastery. The regulation of Secretary of Agriculture No. 32 / 2011 should classify the plantation license and the plan should be revised as the public information.


The next is that Ministry of Agriculture should make the information system about the license as the accountable instrument for the public and control to the integrated plantation business, covering cultivation, industries, and trade.(T1)


This article once published in InfoSAWIT, January 2018


. . . to get our digital magazine can be read in a InfoSAWIT Store .