The Better Ways of CSF

The Better Ways of CSF

InfoSAWIT, JAKARTA – The cheaper crude palm oil (CPO) in the world, as a matter of fact, influences the chain supply to the industries in Indonesia. It started in 2019 that the Palm oil Plantation Fund Management Agency (PFMA) stops the Crude palm oil Supporting Fund (CSF) temporarily.

This may make the agency that has seven missions would not maximally work because for one semester, PFMA had no income from the CSF.

Some sides thought, the CSF could be the best solution to face the cheaper CPO globally through the program, such as, the support of biodiesel mandatory program that could make new domestic markets.

But others thought, what PFMA has done would be the profits for the palm oil industries because the profits from the biodiesel markets are not for many sides. Then what about the incentive for the smallholders?

Based on that, the smallholders encouraged to review the focus of palm oil program that PFMA runs. The facts also revealed that when the CPO gets cheaper, the smallholders should get more helps.

Basically PFMA supports not the industries only but changes the allocation portion for the smallholders reaching 22% of the collected fund which was 5% in the first place.

But some smallholders thought, the biodiesel industries get much more about RP 38,7 billion (2015 – 2019) while the smallholders got Rp 702 billion by the end of 2018.

The gap is the basic thing for the smallholders to protest and to change the program focus that PFMA run. In addition there has been assessment saying that the CSF has pressed the fresh fruit bunch (FFB) price in the field. This is also the reason to erase/stop the CSF.

But some stakeholders thought, the idea to stop CSF is not the best solution because the private sectors still need fund to develop palm oil to run the programs that have been made since 2015 as the impact that the government could not prepare from the Expenditure.

The question remains, what is the better solution to the CSF?

Dear readers could read it in Focus of InfoSAWIT, June 2019. (T2)


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