InfoSAWIT, JAKARTA - Suaduon Sitorus of Jaringan Petani Sawit Nasional said, to get more expensive fresh fruit bunch (FFB), there would be two things for the government to do. The first, normalize the market chain because CPO stock buffer is always the reason to publish kinds of policies. To solve it, it needs to revoke domestic market obligation, domestic price obligation, flush out, and export levy.
The second, the government should deliver incentive for the exporters by reducing Out Fee numbers. What the government is doing is not the best solution because in RMF Number 115/2022, levy deletion is available until 31 August 2022 only, but per September 2022 it would be back to normal and the numbers would be US$ 240.
He continued, the regulation would be dangerous because the deletion also confirms to escalate more citation which was only US$ 200/ton and will be US$ 240/ton.
“The stakeholders would respond it by not escalating the FFB. We think, this is male-female solution,” he said in the press conference of Persatuan Organisasi Petani Sawit Indonesia (POPSI) that InfoSAWIT facilitated, Wednesday (20/7/2022) in Jakarta.
He continued, the smallholders who are not familiar with levy deletion would be thinking that it is a hope. “We hope, every association should have the same vision of struggle and claim that the government should be serious to what the smallholders face,” he said.
Chairman of Asosiasi Petani Kelapa Sawit Indonesia (Apkasindo) Perjuangan, Alvian Rahman told, FFB gets much cheaper in the past three months. “The smallholders get losses for the incorrect policies,” he said.
When CPO and its derivative exports were banned on 28 April 2022, FFB got drastically cheaper. The planters did panic and impact to the smallholders’ economy because many depend on palm oil.
He continued the solution should be by CPO exports in phase. Per July 2022, the CPO stock could be 8 million ton. “If the exports run at once, this would make CPO get cheaper in the globe,” he said. It needs to evaluate the numbers of Out Fee and levy. Looking back to other countries, in this condition, they got lower export tax, for instance, Thailand which is only about 7%, Malaysia about 3%, Vietnam about 13%, “Indonesia gets the tax up to 60%,” Alvian said. (T2)