InfoSAWIT, JAKARTA – The member of Commission VII Indonesian Legislators, Bambang Patijaya was worry about the expensive tax in palm oil plantation derivative products. The tax that could be reaching about 9% to 12% might burden palm oil industries. Even though some companies that invested in some regions got the incentives, he thought, it needed to multiply the incentive from the government to encourage innovation development in downstream sectors.

He also emphasized the additional incentive from the government would be very helpful for business sectors namely when developing new innovation in palm oil production and process. He thought the support would minimize not only the expensive taxes but also encourage the companies to get more innovations and escalate their investment.

“If the companies that made innovations got particular incentive from the government, this would be something interesting to develop palm oil downstream products to be more qualified and competitive,” he said, as InfoSAWIT quoted from TVR Parlemen, Wednesday (14/8/2024).

He continued it would be very significant for palm oil industries to get innovation to confirm sustainability and competitiveness in the globe. By delivering the right incentive, he hoped the companies in Indonesia would keep innovating and developing more additional palm oil downstream products.

He also suggested the government to listen to every input from the business sectors, namely about providing incentives because the synergy between the government and private sectors would be the key to face every available challenge and get the chance in palm oil industries.

As one mainstay commodity in Indonesia, palm oil would massively have the big potential to be developed by having innovations that would be supported by pro – investment policy and the right incentives from the government. Bambang hoped this would reinforce Indonesia as the main palm oil producer in the world and encourage more sustainable and inclusive economic progress. (T2)