InfoSAWIT, BANDUNG – Some palm oil plantation production regions in Indonesia got the impacts of flood recently. This delivered impact to crude palm oil (CPO) price that got more expensive in domestic level, that reached Rp 12 thousand per kilogram.
As the climate gets better in March 2024, CPO would be cheaper to be about Rp 11.700 per kilogram. The price level would maintain palm cooking oil price at economic price.
This would open chance to implement palm cooking oil subsidy to keep running. But in the distribution process, there should be mechanism by the government, such as, through ID food or Perum Bulog. It was told by Sahat Sinaga, Chairman in duty of Indonesian Palm Oil Board (IPOB) in a Workshop Jurnalis Industri Hilir Sawit in Bandung that InfoSAWIT attended, Thursday (1/2/204).
Sinaga thought, the flood made fresh fruit bunch (FFB) got more expensive but it got cheaper as the climate got better. Meanwhile, to confirm palm cooking oil distribution running well, Sinaga told it needs the roles of the government to regulate its distribution through official distributors, such as, ID Food and Perum Bulog. The subsidy should be from Palm Oil Plantation Fund Management Agency and the industrial market mechanism would be only sell and buy.
“Palm cooking oil subsidy should not be directly handed over to the factories. They should do transaction (buy and sell) only. It is better if the subsidy should be handed over for the distributors that cooperate with the government,” he said.
It is hoped this would support palm cooking oil distribution running smoothly to the people.
DMO (domestic market obligation), Sinaga thought, made issue in palm oil exports. “If there is no DMO, it would help to maintain export balance,” he said.
He also hoped these would optimize the advantages from more relatively stable price, confirm subsidized palm cooking oil available always, support the smooth distribution in this country.
“By the good cooperation between the government and palm oil industries, it is hoped to create good ecosystem and sustainable palm oil downstream industries in Indonesia,” he said. (T2)