B30 to be B20: Not to Sacrifice Smallholders

Doc. InfoSAWIT
B30 to be B20: Not to Sacrifice Smallholders

InfoSAWIT, JAKARTA - Serikat Petani Kelapa Sawit (SPKS) thought, the government’s decision to solve palm cooking oil issue has sacrificed smallholders in many regions. For information, the government revoked the highest retail price (HRP) and delivered subsidy to the stakeholders to produce bulk palm cooking oil. But the source of the fund to the subsidy derived from palm oil fund by escalating palm oil export tax.

Prior, through Regulation of Minister of Finance Number 23/PMK.05/2022 about Public Service Obligation on Palm Oil Plantation Fund Management Agency (PFMA), the government progressively increased palm oil fund. If crude palm oil (CPO) is getting more expensive, the tax is getting bigger. In the regulation, the highest tax or fund is if the CPO is more than US$ 1.500 within the tax about US$ 375/ton.

Senior economist, Faisal Basri told, the main factor in this issue is the dualism price policy. Biodiesel is sold according to the international price while palm cooking oil is sold in domestic price. As the result, CPO is sold to produce biodiesel. “The increasing export might not be useful. It will be better to supply biodiesel and the impact is that the smallholders would be miserable,” he said, as in the official statement to InfoSAWIT recently.

Meanwhile, General Secretary of SPKS, Mansuetus Darto said, the substitution of what the government’ decision to increase palm oil fund is the repeated mistake by the government. For all these years, many smallholders complained for the cheaper fresh fruit bunch from palm oil tax. The smallholders are the victims for palm cooking oil is rare.

He also thought, this issue could be solved if mandatory biodiesel program (B30) which runs until now should be reduced to be B20. This is the solution about materials in order not to focus on biodiesel program. By reducing it to be B20, palm oil fund would be surplus.

Smallholders replanting program (SRP) should run well to get the better production. “For all these years, this program should follow bureaucracy and difficult for the smallholders to get SRP fund. We realized, there are strategies done by the big stakeholders to get massive new planting to solve palm cooking oil issue,” he said. (T2)