PALMOILMAGAZINE, JAKARTA – Mansuetus Darto, Board of Advisors for Serikat Petani Kelapa Sawit (SPKS), proposed a revision of the Palm Oil Plantation Fund Management Agency’s guidelines to allow palm oil funds to support the development of other commodities, such as chocolate, coconut, and cocoa.
Darto argued that the fund should not be exclusively allocated to palm oil but should also support other crops. “While palm oil has seen rapid development and support, other commodities have been neglected. People need more options beyond palm oil,” he said in an official statement to Palmoilmagazine.com on Friday (12/7/2024).
He noted that many smallholders focus on palm oil due to available technology, funding, and human resource development. Providing similar support to other commodities would offer smallholders alternatives. “When the price of fresh fruit bunch (FFB) drops, having other commodities to fall back on would be beneficial,” he added.
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To support it, it needs export citation for other commodities and should not be burdened from palm oil export citation. For instance, chocolate, coconut, and cocoa should have citation even though it would not be as same numbers as palm oil. “The chocolate and other commodity stakeholders would be happy if the fund (to help the commodities, besides palm oil) would be from palm oi but to be fair, they have to get citation,” he mentioned.
He also suggested funds for other commodities should be managed by PFMA to get efficiency rather than establishing new agencies. “It means, other commodities in one regency where palm oil, cocoa, coconut develop, would be well managed and would be having changing land use change to be palm oil,” he explained.
Besides, it needs to notice the smallholders/farmers food security, for instance, in replanting program, the smallholders should maintain some of their areas to develop other commodities. “If they have 4 – 7 hectares palm oil plantation, they could replant only 2 – 4 hectares only. The rests should be planted or developed by other commodities. This could be the good strategy for the government,” he said.
The government, namely steering committed, should clearly have the good strategies to support commodity diversification in order not to have over production in the future but to confirm food security for the farmers/smallholders.
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Prior, Minister of Trade, Zulkifli Hasan said that President Joko Widodo would establish a special agency to manage cocoa and coconut. This would join PFMA which manages the fund from many stakeholders for many needs, such as, replanting.
“It does not need new agency but the agency should be combined into PFMA. Palm oil, cocoa, coconut, could be the same,” Zulkifli said in the complex of Istana Kepresidenan, Jakarta.
He also explained that by establishing the new special agency in PFMA, the fund to develop cocoa and coconut seeds would be realized by having cross subsidy. “If there is one agency and it gets citation, this would be impossible. It would be difficult. But PFMA has fund more than Rp 50 trillion. The cross subsidy would be for seeds, research, and others about the commodities. The fund would be taken and handed over and managed by PFMA,” he said.
He also emphasized by having the scheme, cocoa and coconut exporters would not pay new dues. “We have the institution. No more than that. There would be citation but would not be added,” he said.
This would help to develop cocoa and coconut without multiplying financial burden for the exporters. By taking advantages on the fund in PFMA, the government hoped to escalate effectiveness and efficiency for other mainstay commodities besides palm oil. (P1)
