InfoSAWIT, JAKARTA – Board of Advisors of Serikat Petani Kelapa Sawit (SPKS), Mansuetus Darto suggested that Palm Oil Plantation Fund Management Agency would need new revision so that palm oil fund could be used to support other commodities to be developed, for instance, chocolate, coconut, and cocoa.
He thought, palm oil fund should not be focused on palm oil only but also other commodities. “For all these years, palm oil has been supported and developed fast while others have been left behind. The people have to get options, not only palm oil,” he said, as in the official statement to InfoSAWIT, Friday (12/7/2024).
Many smallholders want to develop palm oil because it is supported by technology, fund, and human resource development. If other commodities would get the same, the people would have the alternatives. “Smallholders could develop other commodities as the option and when fresh fruit bunch (FFB) gets cheaper, they would still have other commodities to help,” he said.
To support it, it needs export citation for other commodities and should not be burdened from palm oil export citation. For instance, chocolate, coconut, and cocoa should have citation even though it would not be as same numbers as palm oil. “The chocolate and other commodity stakeholders would be happy if the fund (to help the commodities, besides palm oil) would be from palm oi but to be fair, they have to get citation,” he mentioned.
He also suggested funds for other commodities should be managed by PFMA to get efficiency rather than establishing new agencies. “It means, other commodities in one regency where palm oil, cocoa, coconut develop, would be well managed and would be having changing land use change to be palm oil,” he explained.
Besides, it needs to notice the smallholders/farmers food security, for instance, in replanting program, the smallholders should maintain some of their areas to develop other commodities. “If they have 4 - 7 hectares palm oil plantation, they could replant only 2 – 4 hectares only. The rests should be planted or developed by other commodities. This could be the good strategy for the government,” he said.
The government, namely steering committed, should clearly have the good strategies to support commodity diversification in order not to have over production in the future but to confirm food security for the farmers/smallholders.
Prior, Minister of Trade, Zulkifli Hasan said that President Joko Widodo would establish a special agency to manage cocoa and coconut. This would join PFMA which manages the fund from many stakeholders for many needs, such as, replanting.
“It does not need new agency but the agency should be combined into PFMA. Palm oil, cocoa, coconut, could be the same,” Zulkifli said in the complex of Istana Kepresidenan, Jakarta.
He also explained that by establishing the new special agency in PFMA, the fund to develop cocoa and coconut seeds would be realized by having cross subsidy. “If there is one agency and it gets citation, this would be impossible. It would be difficult. But PFMA has fund more than Rp 50 trillion. The cross subsidy would be for seeds, research, and others about the commodities. The fund would be taken and handed over and managed by PFMA,” he said.
He also emphasized by having the scheme, cocoa and coconut exporters would not pay new dues. “We have the institution. No more than that. There would be citation but would not be added,” he said.
This would help to develop cocoa and coconut without multiplying financial burden for the exporters. By taking advantages on the fund in PFMA, the government hoped to escalate effectiveness and efficiency for other mainstay commodities besides palm oil. (T1)
