The Smallholders Urged The Attorney to Investigate Palm Cooking Oil Subsidy Distribution

The Smallholders Urged The Attorney to Investigate Palm Cooking Oil Subsidy Distribution

InfoSAWIT, JAKARTA – To stabilize palm cooking oil price, Palm Oil Plantation Fund Management Agency (FPMA) was mandated to manage palm oil fund and distribute palm cooking oil subsidy. The subsidy was running when domestic market obligation was too.

Meanwhile Ministry of Trade pointed who got the subsidy. In the period, PFMA distributed about Rp 11,2 billion subsidy in two phases of payment. The first one reached Rp 3,6 billion and the second one reached Rp 7,6 billion.

General Secretary of Serikat Petani Kelapa Sawit (SPKS), Mansuetus Darto said, the distribution process had not legal and strong policy. In the mandate, PFMA has no obligation or authority to distribute subsidy to stabilize palm cooking oil price.

“We suspect, the subsidy distribution related to the owners (palm oil rich people) who become the steering committee in PFMA, as the sources to four suspects as the operators only.

In addition, IWW – one of the suspect was one of supervisory board in PFMA, and was General Director of Foreign Trade Ministry of Industry,” he said, as in the official statement to InfoSAWIT.

He also mentioned, subsidy distribution could cause the loss for the country. That is why the Attorney should investigate the roles of PFMA, every director, and steering committee that published the policy.

Regulation of Minister of Industry Number 8 / 2022 regulated that the steering committee plays central roles to deliver subsidy. The rich men of palm oil plantations are in it, including the founder of Wilmar - Martua Sitorus. There might be conflict of interest. In addition PFMA since 2015 to 2021 kept delivering profits for biodiesel companies through subsidy within the total in the period up to  Rp 110,05 billion.

SPKS knew, some companies that got the subsidy were related to palm cooking oil case, such as, PT Wilmar Grup (got biodiesel subsidy up to Rp 39,52 billion), PT Musim Mas Grup (Rp 18,67 billion), and Permata Hijau Grup (Rp 8,2 billion).

“This is the right moment to evaluate the subsidy distribution by PFMA after the suspects were announced. For all these years, there is no fairness for the smallholders but delivered profits for the corporates,” he said.

That is why, he continued, the investigation by the Attorney should be in detail to know the actors’ involvement in the government and in the corporates.

The approach of end-use owners, based on President’s Regulation Number No. 13/2018 would be possible to conduct in this case and the Attorney would maximally reveal the actors involved and got the advantage of the crime. The Attorney should know any chance of corporates’ crime responsibility to recover the economic loss more maximal.

To get it, he continued, the Attorney could coordinate with other legal institutions, including PPATK (Pusat Pelaporan dan Analisis Transaksi Keuangan) in the very beginning to know every suspicious financial transaction by the related parts maximally. T2)