Smallholders Support the Mafia Investigation

Smallholders Support the Mafia Investigation

InfoSAWIT, JAKARTA – The Attorney Investigation Team at Directorate of Investigation of Junior Attorney for Special Crime decided four suspects about corruption assumption in crude palm oil (CPO) and its derivative product export facility since January 2021 to March 2022. It was announced on 19 April 2022.

The four suspects are IWW as General Director of Foreign Trade, Ministry of Trade; MPP as Commissioner at PT Wilmar Nabati Indonesia; PTS as General Manager at General Affairs PT Musim Mas; and SMA as Senior Manager Corporate Affairs at PT Permata Hijau.

General Secretary of Serikat Petani Kelapa Sawit (SPKS), Mansuetus Darto said, the smallholders in Indonesia support and appreciate what the Attorney has done. The smallholders that cultivate about 6,7 million hectares, got lost for paying expensive palm cooking oil.

Besides, palm cooking oil mafia disgraced palm cooking oil trade promotion from Indonesia in the name of sustainability because the three companies mentioned above are the members of Roundtable on Sustainable Palm Oil (RSPO) – the certification institution on sustainable palm oil in the world. “With all respect and hope, the Attorney should investigate more to know and reveal other actors. Palm cooking oil has something to do with the upstream and downstream sectors,” he said, as in the official statement to InfoSAWIT.

He also mentioned, the companies (Wilmar, Musim Mas, and Permata Hijau) master palm oil sectors – from the upstream to downstream. Unfortunately, the country never has mill and really depends on the companies. It means, the companies have power and can create political and security instability.

“The government should evaluate such cartel namely in policies, biodiesel program which the same companies monopolize. Everything should be comprehensive to deal and can deliver alternative solution so that such companies will not do ‘what they like to do’ in the future days,” he said.

For all these years, the government tends to let refinery produce palm cooking oil by pointing at the international price. As the result, it gets very expensive and the companies always have irrational price (to sell their products) in the markets.

“When the government implements domestic market obligation (DMO), the companies should actually support it to improve the governance,” he said.

But when the policy was published to control the markets, what happened next was that palm cooking oil was difficult to get and buy in the retailers, both in modern and traditional ones. The policy, as a matter of fact, was supported by delivering subsidy to palm cooking oil producers. The policy had no power and the government just let the stakeholders (companies) decide the price, based on the economic value. “As nowadays result, we have to buy a very expensive palm cooking oil still,” Darto said. (T2)