Smallholders Supports the Government to Establish Taskforce for Escalating Palm Oil Industrial Governance

Palm Oil Magazine
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PALMOILMAGAZINE, JAKARTA – Serikat Petani Kelapa Sawit (SPKS) did appreciate and support President Joko Widodo by establishing Taskforce for Escalating Palm Oil Industrial Governance and Optimizing the Country’s Revenue based on Decision of President of Indonesian Republic Number 9 / 2023.

For information chief director of the taskforce is Coordinator Minister in Maritime and Investment, Luhun Binsar Pandjaitan; I Vice Chief is Coordinator Minister in Economy, Airlangga Hartarto and II Vice Chief is Coordinator Minister in Politics, Law, and Security, Mahfud MD.

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According to Chapter 2 of the President’s Decision, the taskforce would deal to escalate palm oil industrial governance, accomplish, and recover the country’s revenue from tax and non-tax in palm oil industries.

General Secretary of SPKS, Mansuetus Darto really supported and appreciated what President Joko Widodo would do to re-manage palm oil industries namely in th revenue.

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He also suggested that the taskforce should work better, be trustable, and transparent. He said that because, the first, the previous audit from Badan Pengawas Keuangan dan Pembangunan (BPKP) was never told to the public. Many things were untouchable in audit process.

“Such as, the companies’ responsibility to the people, and smallholders. That is why in their duties, the taskforce should be transparent, involve the public namely civil organizations and smallholders’ institutions,” he said to Palmoilmagazine.com, Monday (17/4/2023)

The second, the taskforce should be careful to determine the country’s revenue because palm oil plantations may not be the same width with the reality. Many companies have concession areas that enlarged plantations more than business rights. It raised conflicts. If using business rights’ documents, the revenue would potentially get lost.

The third, the taskforce needs to recognize individual growers. every people of Indonesia can only cultivate palm oil plantations that laid about 25 hectares in maximal. Some individuals could cultivate about 50 – 200 hectares but they hide behind the name of smallholder. They are actually businessmen to avoid taxes.

The last, from the utilization, if the country’s revenue from tax gets increasing from palm oil industries, it is hoped to get new portion of palm oil profit sharing and should be distributed in 2023. “The taskforce could escalate profit sharing to many smallholders,” he said.

Prior on Friday (14/4/2023) President Joko Widodo signed the Decision of President of Indonesian Republic Number 9 / 2023 about Taskforce for Improving Palm Oil Industrial Governance and Optimizing the Country’s Revenue. It was decided because industrial development in palm oil – base in Indonesia always escalates in productivity but based on audit result, there are issues in its governance that could potentially lose the revenue from tax and non-tax.

“Based on the consideration, it needs to publish president’s decision to establish taskforce for improving palm oil industrial governance and optimizing the country’s revenue,” the Decision of President of Indonesian Republic Number 9 / 2023 noted, as what Palmoilmagazine.com got, Sunday (16/4/2023).

The taskforce would deal, escalate palm oil governance, accomplish, and recover tax and non-tax revenue from palm oil industries.

It mandates technical executive about everything, leads the executive to integrate, plan everything to implement strategic policies and breakthroughs needed to deal, escalate palm oil governance, accomplish, and recover the country’s revenue from tax and non-tax in palm oil industries. (T2)

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