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To Get More Expensive FFB, LBP Urged Ministry of Trade to Accelerate CPO Export

To Get More Expensive FFB, LBP Urged Ministry of Trade to Accelerate CPO Export

InfoSAWIT, JAKARTA – The cheap fresh fruit bunch (FFB) in palm oil plantation regions is a notice for Coordinator Minister in Maritime and Investment, Luhut Binsar Pandjaitan (LBP).

He urged Ministry of Trade to accelerate crude palm oil (CPO) and the material of palm cooking oil exports by escalating CPO and palm cooking oil material export multiplying ratio becoming seven times from the domestic marketing obligation (DMO). LBP thought, the goal is to get more expensive FFB in the smallholders’ level significantly.

Prior the government delivered quota export incentive five times more to the producers from the distribution realization in DMO and domestic price obligation (DPO). For example, if a producer could distribute bulk palm cooking oil at Rp Rp 14 thousand per liter for about 1.000 tons, the producer could export five times more than 1.000 tons.

LBP confirmed, the government is figuring out to get the target balance in the upstream and downstream sectors to control palm cooking oil price.

“Palm cooking oil selling price is at Rp 14 thousand per liter in Java – Bali. We carefully got the policy to start relaxing, accelerating the exports, and improving smallholders’ FFB price,” he said, as in the official statement to InfoSAWIT, Sunday (3/7/222).

In June 2022, the government allocated the exports for about 3,41 million tons through the transition program and acceleration to deliver certainty for the business world to export (CPO). “The transition program could be running for the next several months,” he said.

He continued, by the late of June 2022, bulk palm cooking oil which was distributed as part of DMO reached 270 thousand tons. The export allocation from DMO can be used for the next six months and some had been conversed to be export rights.

The government would accelerate the export realization because the storage tanks of the companies would be full again. Besides, this should be implemented because the smallholders’ FFB is still cheap.

On the other hand, one thing to make CPO get more expensive in the second semester (in this year) is by escalating biodiesel mandatory program (B30) to be B35 / B40 and should be running flexibly and depend on CPO price and supply.

LBP asked for Ministry of Energy and Mineral Resource, Palm Oil Plantation Fund Management Agency, and PT Pertamina to re-study the plan.

“I hope, every related ministry/instance could follow up their work about this issue to get palm cooking oil price controlled, deliver profits for the people, smallholders, and stakeholders,” he said. (T2)