The Arrest of CPO Corruption: Greedy Evidences of Palm Oil Oligarchy

The Arrest of CPO Corruption: Greedy Evidences of Palm Oil Oligarchy

“What I am telling you is that oligarchy really influence the policies to publish in the government. The ministry that should maintain export quote by noticing domestic market obligation (DMO), did the reverse by publishing CPO export approval,” he said in his official visit to East Java, Wednesday (20/4/2022).

He also mentioned, DMO which should be 30% by the government is actually to maintain the supply needs in this country, including to be processed by palm cooking oil factories. “But for CPO is expensive still and foreign demands were increasing, many actors get mad and greedy,” he said, as in the official statement to InfoSAWIT.

The case, he continued, made loss for the country and also the economy. Because of the lack of DMO, palm cooking oil gets expensive and rare. The government had to spent much from people’s taxes to pay bantuan langsung tunai so that the people could afford the expensive palm cooking oil.

“The cash from national budget should be spent to subsidize their greed. This is a loss for the economy. Not only in budget but this is beyond the limits. DMO and DPO are the direct attention from President Joko Widodo and the first guard to maintain it is Ministry of Trade,” he said.

He continued, for all these years, big palm oil corporates including the three companies that the Attorney decided - PT Wilmar Nabati Indonesia, PT Musim Mas, and Permata Hijau Grup – got billions of rupiah from biodiesel project that PFMA (Plantation Fund Management Agency) distributed.

Dari from PFMA, as quoted from one magazine in national scale, since 2005 to 2021, PT Wilmar Grup got Rp 39,52 billion. PT Musim MAS Grup got Rp 18,67 billion, and Permata Hijau Grup got Rp 8,2 billion.

Of the total six fund advantages from PFMA which derived from CPO and its derivative citation, as a matter of fact, 80% were distributed to about 10 palm oil plantation companies (corporates) to subsidize biodiesel program.

“While the fund to implement smallholders replanting program since 2016 to 2021, for instance, just reached 5 percent or about Rp 6,59 billion. It is no question that the smallholders thought they never get fair policy. In addition, the provincial governments where palm oil plantations develop and want to get sharing fund, will never be realized,” he mentioned.

Sadly, as quoted from Tempo, the concept of use that PFMA gathered export citation, is determined by steering committee which is led by Coordinator Ministry and involves four big stakeholders in biodiesel meeting.

“PFMA is a casher only. Do what the decision in in the discussion. Don’t ask if Corruption Eradication Commission once told that there was over budget in biodiesel subsidy which made the country lost about Rp 4,2 billion in 2020,” he said while emphasizing to reveal what is bad in the management. (T1)