The Impact Fund Reaching Rp 2,78 Billion is Allocated to Biodiesel Industries

The Impact Fund Reaching Rp 2,78 Billion is Allocated to Biodiesel Industries

InfoSAWIT, JAKARTA – The government gave ‘price’ to biodiesel industries reaching Rp 2,78 billion from the National Economic Recovery Program or Program Pemulihan Ekonomi Nasional (PEN) as the impact of corona virus (Covid-19) pandemic. The incentive would be managed by Palm oil Plantation Fund Management Agency (PFMA).

But ever since it was made, the fund had distributed to the multi – national companies to increase the biofuel production. Covid-19 pandemic has postponed biofuel incentive implementation in Malaysia but Indonesia does not postpone the biofuel target implementation this year.

General Secretary of Serikat Petani Kelapa Sawit (SPKS), Mansuetus Darto said that the cheaper crude oil price makes the biodiesel program of President Joko Widodo (Jokowi) unreasonable anymore unless if the goal is to make the rich stakeholders much richer.

He also mentioned, the crude palm oil supporting fund (CSF) was made based on the promise to increase the living source of the smallholders. “This is the trick only. The multi-national companies have used Covid-19 as the reason to forbid the workers gather with their family in Idul Fitri but the companies got the fund from the country from the pandemic,” Darto said, as in the official written statement to InfoSAWIT, Thursday (18/6/2020).

The government increased the crude palm oil (CPO) export retribution from US$ 50 per ton to be US$ 55 per tons, to increase the CSF.

In 2017, Corruption Eradication Commission (CEC) assumed the corruption in the CSF that PFMA and some stakeholders managed.

“The corruption threatens the development and makes bigger gap, for instance, Martua Sitorus, who funds Wilmar and the king of palm oil paid the tax reaching Rp 700 billion but gets subsidy reaching Rp 1,2 billion. This is the budget in National Budgt.

In general, the biofuel fund has been separated from their dues but their dues are not enough. They asked for from the National Budget too,” an economist, Faisal Basri said.

Wilmar International is the single biggest company which gets the fund. In 2015/2016 the biggest palm oil trader in the world got hardly 55% of the fund. In 2017/2018 Wilmar got hardly 40% of the total allocation. The second company got the fund during the period was Musim Mas within 17,5%, then Darmax Agro within 10,7%, and Sinar Mas within 8%.

Forest Campaign, Greenpeace Indonesia, Arkian Suryadarma said that the scientists claimed that biofuel is not the solution to stop the climate change, but would make it worse. But the multi-national companies practically made the regulation in the last decade in Indonesia and they even do not care.

“They fail to pay the compensation on the damage from the fire in the forest and areas, destroying the tropical forests and making millions of children risky to the smoke. How could the government justify and spend money to the industries that destroy our country while stealing fund to recover the economy because of the pandemic?” he said. (T2)


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