InfoSAWIT, JAKARTA – Indonesia’s Ministry of Agriculture (Kementan), through the Directorate General of Plantations, is ramping up efforts to improve governance in the palm oil industry. On Monday, the Directorate General received a systemic review from Ombudsman RI addressing the prevention of maladministration, with a focus on governance improvement across key areas.
Acting Director General of Plantations, Heru Tri Widarto, revealed that the Ombudsman’s review highlighted potential maladministration in three critical areas: plantation land management, administrative licensing challenges, and trade governance within the palm oil sector.
“This review by the Ombudsman identifies pressing issues, such as land management problems, inefficiencies in licensing processes, and inconsistencies in trade governance, all of which require immediate attention,” Heru stated in an official release quoted by InfoSAWIT on Tuesday (19/11/2024).
Key Recommendations
The review offered several actionable recommendations for the Ministry of Agriculture and related institutions to enhance governance in the palm oil industry. The primary recommendations include:
- Facilitating land release for smallholder palm oil plantations that already have legal land ownership.
- Improving data collection for cultivation registration certificates (Surat Tanda Daftar Budidaya/STDB) for smallholders.
- Ensuring compliance of all industry players with Indonesian Sustainable Palm Oil (ISPO) certification.
- Strengthening coordination between the Ministry of Agriculture and the Ministry of Industry for integrated palm oil mill licensing.
- Guaranteeing fair fresh fruit bunch (FFB) pricing for both plasma and independent smallholders, supported by effective enforcement mechanisms.
- Establishing a National Palm Oil Industry Governance Agency directly under the President of Indonesia.
“We deeply appreciate the Ombudsman’s comprehensive review and will promptly act on the recommended improvements to enhance the governance of the palm oil industry moving forward,” Heru concluded.
This initiative underscores the Ministry’s commitment to fostering a sustainable and transparent palm oil industry. By addressing key administrative and operational challenges, the ministry aims to deliver better outcomes for all stakeholders involved while ensuring the long-term competitiveness of Indonesia’s palm oil sector. (T2)
