The Policy Damaged Palm Oil Markets

Doc. InfoSAWIT
The Policy Damaged Palm Oil Markets

InfoSAWIT, PEKANBARU – The government established Palm Oil Plantation Fund Management Agency (PFMA) and trusted it to get citation and manage the fund outside of the tax. By the government PFMA is allowed to manage Crude palm oil Citation Fund (CSF) in specific and independently to develop palm oil industries nationally.

“Ever since PFMA was established, the goal is to get CSF out of tax that it should independently manage to develop palm oil industries nationally. Unfortunately, CSF by PFMA, as a matter of fact, is citation for the exporters or traders,” Soaduon Sitorus said to InfoSAWIT, Monday (20/6/2022).

The independent smallholder and also public observer thought, CSF by PFMA should be from the big companies who owns and cultivate business rights only.

He has no question if the exports of vegetable oil, namely crude palm oil (CPO) gets stuck. It means, if the markets have been broken down, he continued, everything relating to the supply chain would get the impacts, namely the independent smallholders, including him.

If the market obstacles are not revoked, or substituted to the upstream sector in Business Rights – base, he believed, the smallholders’ production would be much cheaper.

“If there are few sides still giving hopes and dreams without proving by revoking the market obstacles, it would be fake promises,” Sitorus said. (T5)