Apkasindo Urged Biodiesel Case Should Not be Postponed to Maintain FFB Price Stable

Palm Oil Magazine
Doc. Palmoilmagazine.com

PALMOILMAGAZINE, JAKARTA – Asosiasi Petani Kelapa Sawit Indonesia (Apkasindo) has strongly advocated against delaying the assumption of corruption in the biodiesel case. They emphasize the importance of preventing any potential adverse consequences for both the future of the biodiesel program and the well-being of smallholders, who could become victims of such delays.

Chairman of Apkasindo, Gulat ME Manurung, remarked, In cases involving biodiesel, we believe that the Attorney, as a legal institution, should carry out its responsibilities. If there are issues, they should be resolved promptly rather than allowing for multiple interpretations.

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“ The credibility of the biodiesel program could be questioned if these cases are not addressed in a timely manner. Therefore, it is crucial not to postpone the proceedings, especially for the sake of smallholders.” This statement was provided in an official communication to Palmoilmagazine.com on Tuesday, September 26, 2023.

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Gulat also reminded that biodiesel is one government’s mandatory program to get energy sovereignty and to absorb palm oil in this country. This is proved that for the past four years, fresh fruit bunch (FFB) that smallholders produced, got better price as same as crude palm oil (CPO) price escalated.

Data from Apkasindo showed that smallholders’ FFB price since the implementation of B30 got better to be Rp 1.800 -Rp 2.550 per kg or much better than the previous years, which was only Rp 700 -Rp 1.200 per kg.

Gulat continued every party needs to be aware of biodiesel case because it would have domino effects for smallholders. As a matter of fact, related instance in biodiesel program, such as, Ministry of Finance, Coordinator Ministry in Economy, PT Pertamina, Palm Oil Plantation Fund Management Agency (PFMA), Ministry of Agriculture, would evaluate the program if it hits legal issue. It probably happens that the program would not be continued.

“If biodiesel program is not available, 13, 5 million tons per year would not be absorbed,” he said.

Also Read : Chairman of Apkasindo: Smallholders Are Limped to Implement ISPO, Need Evaluation

Gulat delivered example that CPO got cheaper when biodiesel case was blown up. CPO tender at PT Kharisma Pemasaran Bersama Nusantara (KPBN) got cheaper from Rp 11.300 per kg to be Rp 9.800 per kg.

“The cheaper CPO connects with 17 million smallholders. The bad issue in palm oil would have something to do with (palm oil) industries in the globe and in Indonesia,” he told.

Apkasindo noted that smallholders FFB got cheaper from Rp 3.300 per kg to be less than Rp 1.500 per kg when palm cooking oil and its derivative products were banned to export on 28 April 2022. It got better to be Rp 2.200 per kg when the government re-opened exports on 24 May last year. After that it was in fluctuation less than Rp 2.500 per kg, and it never got recovered before the export ban.

Gulat also reminded that the government needs to appreciate palm oil industries. The economy in Indonesia survives fast after Covid-19 pandemic because of these industries.

“The world was afraid of lacking palm oil supply. But in this country, the green golden commodity is the icon,” Gulat said. (T2)

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