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Chairman of Commission XI of the DPR Questions the Budget Mechanism and the Reduction of Palm Oil Export Levy at BPDP



Doc. InfoSAWIT/Chairman of Commission In a working meeting with BPDP, Misbakhun.
Chairman of Commission XI of the DPR Questions the Budget Mechanism and the Reduction of Palm Oil Export Levy at BPDP

InfoSAWIT, JAKARTA – Chairman of Commission In a working meeting with BPDP, Misbakhun questioned the transparency of the flow of funds and the budget deficit which would reach IDR 3 trillion in 2022. 

Misbakhun revealed that revenues from palm oil export levies, which reached IDR 32 trillion in early 2022, do not go to the state treasury (APBN), but are directly managed by BPDP. "This mechanism is interesting, because exporters pay levies based on the Goods Export Notification (PEB) or production volume, but the funds are not included in the APBN. This accountability needs to be clarified," he said at the DPR RI Commission XI Hearing Meeting with the Public Service Agency, Plantation Fund Management Agency (BPDP), which was monitored. InfoSAWIT, Monday (17/2/2025).

He also questioned the BPDP-KS budget deficit of IDR 3 trillion in the same year, even though actual spending for the biodiesel program was only IDR 5.8 trillion. “How can there be a deficit? Is there a mismatch between receipt and distribution?” asked Misbakhun. 

Furthermore, Misbakhun appreciated the role of BPDP-KS in funding the biodiesel program which he considered strategic. "The development of biodiesel reduces dependence on imports of fossil fuels, maintains exchange rate stability, and reduces demand for foreign exchange," he explained. However, he asked for an explanation regarding the fund pass-through mechanism for biodiesel, including the authority to determine the allocation. 

A sharp focus was also placed on the policy of reducing palm oil export levies from 11% to 7.5% through the 2023 Minister of Finance Regulation (PMK). According to Misbakhun, this policy is contradictory to the country's need for revenue, especially when BPDP-KS is experiencing a deficit. “When the state needs funds, levies are lowered. What is the basis of the study? The palm oil sector controls large areas of land, but contributions to the country only come from PBB and exports. "Don't let this policy only benefit corporations," he stressed. 

Misbakhun urged BPDP and the government to provide open clarification regarding three things, first, the causes of the budget deficit, second, the mechanism for determining the allocation of biodiesel funds, and third, the basis for reducing export levy rates. "We must ensure that public funds are used optimally, not burdening the state," he concluded. 

This question is considered crucial, considering that BPDP-KS plays a vital role in encouraging palm oil downstreaming and the energy transition. Transparency is the key so that strategic programs are not hampered by budget polemics. (T2)


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