Palm oil and Partisanship

Palm oil and Partisanship

InfoSAWIT, JAKARTA - Palm oil plantation sectors develop fast in Indonesia. Its price is good too. In the early of 1980s, there were few sides that noticed the commodity from African forest.

When crude oil is expensive, palm oil is too. The expensive commodity takes the stakeholders and the people to develop palm oil plantations.

By having better chain of carbon, palm oil becomes the source of material both for food and for energy industries. For having the superiority, palm oil is difficult to be developed.

In the foreign countries, palm oil faces many trade barriers both in the barrier regulations and non-tariff barrier. In the domestic, it does the same.

The non-partisanship policy also makes this commodity un-economic. The regional regulations which may press this commodity sometimes make the production and distribution costs more expensive. Instead of getting profits, what to get is over budget.

It is admitted that in the last several years, the central government really pays attention to palm oil industries but the partisanship does not follow the synergic regulations between the central and the government. As a matter of fact, the synergic regulations between the two, ministries, and institutions would be the key to develop palm oil to be the better one.

In the previous the government once published the regulation which could be as the ‘brave’ one, saying that, palm oil is categorized as the forestry plantation and it could be planted in the mixed forest plantations.

Unfortunately the policy was no longer than one month published because the civil organizations protested. Actually it is hoped that the government could take and invite the investors. For the regulation about palm oil moratorium license in the primer forests is published, the investments are led to develop palm oil in the degraded and unproductive forests.

The issue is that the investors avoid such conditions because of the small worth of investment. The industrial plantation forest for kinds of plantations, including within the combination with palm oil may trigger the interests of the investors.

Then is it worth that palm oil is categorized as the forestry plantation? To know more, dear readers could read in Focus which is written by Teguh Patriawan who is as the Vice Chairman of Steering Committee of Plantation Development, Indonesian Chambers and Industries. (Published in InfoSAWIT, May 2019)


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