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Formation of a Special Palm Oil Agency Could Enhance State Revenue



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Formation of a Special Palm Oil Agency Could Enhance State Revenue

InfoSAWIT, JAKARTA – Rino Afrino, the Secretary General of the Indonesian Palm Oil Farmers Association (Apkasindo), revealed that in the past two weeks, discussions have been held with one of the relevant ministries regarding the establishment of a special palm oil agency. This initiative aims to ensure that the proposal reaches President Prabowo Subianto.

“Our goal is to advocate for the realization of this agency so that it reaches him. Thus, the President receives documents or information that can explain the significant benefits that can arise from the establishment of this agency,” Rino stated during a discussion titled “In-Depth Analysis of Sustainable Palm Oil Governance,” organized by the Agricultural Journalists Forum (Forwatan) at the Ministry of Agriculture, attended by InfoSAWIT, in Jakarta on Thursday (December 19, 2024).

From these discussions, an interesting issue emerged regarding the impact of this special agency on state revenue. One key point discussed was whether the agency could increase state income from the palm oil sector. According to Rino, this is a crucial aspect in addressing various complaints that have arisen over time.

“The answer is yes, because if there is a more organized agency, with better data validation, optimizing this sector will be easier. The most important thing is the increase in state revenue,” he explained.

Rino added that there is potential for state revenue from the palm oil sector to increase by two to three times the current figures. He believes this significant potential has not yet been fully utilized.

Meanwhile, Forestry and Plantation Law Expert Sadino stated that if a special palm oil agency is established, whether named BOSI or something else, it should focus on expediting the resolution of issues in the palm oil sector.

“This special agency is essential to address the chaos that currently exists. If the palm oil sector has a strong authority that directly communicates with the President, then regulations will no longer be seen as absolute or as a ‘holy book’,” he said.

Sadino also emphasized the importance of aligning regulations among various ministries, such as ATR/BPN, Trade, and KLHK, to eliminate overlapping policies that have hindered the palm oil sector.

“What is needed is acceleration and coordination so that conflicting ideas and policies can be resolved more effectively,” he concluded.

The establishment of this special palm oil agency is expected not only to respond to complaints but also to unlock significant potential that can drive the palm oil sector to become more productive and contribute significantly to the national economy. (T2)


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