The Worst History for Palm Oil Industries in Indonesia

The Worst History for Palm Oil Industries in Indonesia

Photo by : Afrinaldi Zulhen / Sawitfest 2021

Palmoilmagazine, JAKARTA – When the fertilizers and pesticides get more and more expensive, crude palm oil (CPO) and its derivative products do too. All of a sudden, CPO and its derivative products are banned to export by saying, to get palm cooking oil abundant and it should be sold at Rp 14.000/liter. “It really hits smallholders,” an independent smallholder from North Sumatera, Soaduon Sitorus recently said to Palmoilmagazine.

He thought, by CPO export ban, the country forced palm oil industries from the upstream to downstream sectors sold their products as cheap as it could until the needs are in the same price as what the country decided.

“Smallholders are one main stakeholders in the upstream sector as fresh fruit bunch (FFB) producers (the material to produce palm cooking oil). What the government decided would be the loss for the smallholders. This is really bad for us,” he said.

It could be said that this is the worst history, not only for the smallholders but also for the whole stakeholders from the upstream to downstream sectors. This is a loss for the country too.

Sitorus also mentioned, the export ban came up to fulfill the needs in this country but the facts showed, the needs are much less than the production. This is unreasonable decision.

“When the country fails to implement the win-win solution regulations, such as, domestic marketing obligation and domestic price obligation on palm cooking oil as the special distribution for palm cooking oil in the domestic, who is in charge? Isn’t it the party which is in charge to run and monitor the regulation? Shouldn’t they be evaluated?” he said.

The country must take its responsibility in fair way when sentencing CPO export ban. The country should buy and gather it based on the price globally namely the products which are banned to export.

“The rights of power of the country to agricultural, plantation, and livestock products is not the same with the mining from the natural resources,” he said. (T2)


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