The Critics to CSF and OF

The Critics to CSF and OF

PalmOilMagazine, JAKARTA – In general Crude palm oil Supporting Fund (CSF) and Out Fee that the government regulates distorted the price in the producers and smallholders’ level. Board of Editorials of PalmOilMagazine, Maruli Gultom said that crude palm oil (CPO) consumers have the obligation to pay CSF and OF and this cuts off CPO price structure.

Gultom also mentioned that the downstream producers would be asked that CPO that would be purchased should be delivered to export ports. This would cut off the CPO price. “Sadly, the CPO buyers both exporters and traders should pay CSF by cutting of the price,” he said as the speaker in Focus Groups Discussion Sawit Berkelanjutan Vol. 7 within the theme “Meningkatkan Peranan Petani Sawit Rakyat Melalui Subsidi Replanting Dan Subsidi Sarana Prasarana,” Wednesday (28/4/2021).

He also mentioned that it is a general secret that CSF is used to subsidize biodiesel program. It means that CSF is used to subsidize downstream industries because their material to get is cheaper. “They also would get more profits if producing cooking oil, butter, olein, or others. I think, the downstream lobby makes the export tax come up,” Gultom mentioned.

He also continued that the downstream industries are always accused if something happened, for instance, as he experienced, in every year heading to Lebaran day, they would be invited because CPO is missing in the markets but the facts were, they sold it to the consumers. “It was Minister Rini Soemarno. I told her that we sold it because it cannot be piled in the storage tanks. It would be faster to get rotten. If CPO is not sold in the markets, seek the downstream industries,” Gultom mentioned.

He also said that the CPO price is purely created by the market law, which means, the supply and demand. That is why, please do not intervene with policy and politics. “Who would guarantee if CPO would be more expensive because of biodiesel. I do not trust it. There is no formulation to calculate it. It is non-sense to say if biodiesel contributes about some percent to increase CPO price,” Gultom emphasized. (T2)

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