4 Things to Regulate Palm Oil Governance to Get More Expensive FFB

4 Things to Regulate Palm Oil Governance to Get More Expensive FFB

InfoSAWIT, JAKARTA – Minister of Trade, Zulkifli Hasan arranged some new strategies to get smallholders’ fresh fruit bunch (FFB) more expensive or could be more than Rp 2.000/kg.

The first, vanishing export levy and increase ration multiplier of export in the scheme of domestic market obligation (DMO) distribution and crude palm oil (CPO) and its derivative export quota would be bigger.

“The government temporarily does not regulate export levy for CPO to be zero which it was US$ 200/ton," he said, as in the official statement to InfoSAWIT, Wednesday (3/8/2022).

The second, realizing export rights multiplier on DMO CPO/palm cooking oil to be 1:9 times which was 1:7 times. It has been running since August 1, 2022. DMO distribution would be validated by the team in related ministry/institution in every week and the outcome would be renewed to SINSW to be claimed and becoming the basic to get export approval by producers.

“By increasing export rights multiplier ration to be 1”9, and additional intensive to DMO distribution in the form of packaged palm cooking oil with the brand Minyakita, the company could export 13,5 times from the DMO realization, or more than they did,” he said.

The third, the government through the Decision of Minister of Trade Number 1117 / 2022 also delivered incentive for regional multiplier on DMO palm cooking oil distribution in certain regions, namely where the supply is not optimal still, such as, in the eastern. This would also escalate the export quota for the exporters/producers.

“The regulation is about to fulfill palm cooking oil supply in eastern Indonesia which is still minimal to get the supply and the distribution is still in western Indonesia,” Hasan said.

The fourth, Ministry of Trade adjust the policy to publish reference price which would become the determination of export levy and Out Fee on CPO and its derivative from once a month to be once in two weeks. The calculation has been substituted and there would be more actual reference price which is update to CPO price in international level.

“Besides stabilizing the supply and price of palm cooking oil so that the people could effort, we keep doing the best to get smallholders’ FFB price more expensive so they have spirits to plant, nurse, and harvest their plantations to be better, at least, more than Rp 2.000/kg,” he mentioned. (T2)