InfoSAWIT, JAKARTA – The researcher of Tata Kelola Sawit Yayasan Madani Berkelanjutan, Erlangga revealed that the input-output analysis that Yayasan Madani Berkelanjutan did showed that CSF to biodiesel subsidy did not make massive advantage to production balance compared to the program that directly relates to palm oil plantation development.
“If every CSF acceptance is used to palm oil plantation, production output in the sector would be increasing 6,52% and have something to do with others’ output, such as, worker production increasing 0,59%, housing production output increasing 0,50%. ut if CSF is mostly used to biodiesel subsidy, it would increase biodiesel industrial output about 1,23%. Worker and housing production and output would be 0,31%,” Erlangga told.
The goal of CSF is to increase the smallholders’ welfare as it is regulated in the Laws No.39 / 2014 about Plantation. Unfortunately, the realization comes to an end.
To maximally support the smallholders’ welfare in Indonesia, Palm Oil Plantation Fund Management Agency should change the financing system for nowadays smallholders’ needs. It should also improve the formula in fresh fruit bunch (FFB) price in the smallholders’ levels.
Yayasan Madani Berkelanjutan revealed that crude palm oil supporting fund (CSF) that should actually be developing palm oil plantations, such as, replanting program, developing the infrastructures, human resource, and others, as a matter of fact, is used to subsidize biodiesel program.
Data from Corruption Eradication Commission (CEC) also revealed that PFMA gathered CSF and its derivative up to Rp 11 billion in 2016. From the numbers, PFMA allocated 81,8% to biodiesel subsidy. There were two business groups getting the biggest allocation, they were, Wilmar Grup and Musim Mas Grup,” Program Officer Tata Kelola Sawit Yayasan Madani Berkelanjutan, Trias Fetra said.(T2)
