Palmoilmagazine, JAKARTA – Komisi Pengawas Persaingan Usaha (KPPU) revealed that land mastery – in this case about permit and Business Rights – by big corporates which surpassed the maximal limits, is the acute issue in Indonesia, namely in palm oil plantation sectors.
General Secretary of Serikat Petani Kelapa Sawit (SPKS), Mansuetus Darto mentioned that the issue relates to agrarian sector in palm oil plantations. There have been gaps of land mastery. Conflicts, and put the indigenous people away from their own land in crude palm oil (CPO) supply nationally.
“This is a huge issue and impacts to make the people and smallholders poor in many villages. Imagine, if permits and Business Rights are always published (for the corporates), the forests and areas namely in many villages will be no more and would impact to the social, economy, and environment. The villagers, indigenous people would get the impact in person,” he said to Palmoilmagazine, Wednesday (1/6/2022).
He also mentioned, what KPPU revealed actually confirmed the monopoly practices and unhealthy business in the upstream to downstream sectors nationally. In the upstream sector, for instance, as he continued, the big corporates mastered the land more than the maximal width. They also ‘play’ in downstream sectors and get rid of the smallholders from CPO supply or biodiesel program.
“The government should improve the market structures, the governance because we knew, palm cooking oil was rare and difficult to buy some time ago,” he said.
Before the case – rare palm cooking oil – happened, SPKS proposed to KPPU to investigate monopoly and unhealthy business assumption in palm oil and biodiesel sectors.
“We hope, the report could be the way to improve the market structure in palm oil industries nationally. The government needs to evaluate and this could be the right moment after the government banned CPO and its derivative exports some time ago,” he said. (T2)