InfoSAWIT, JAKARTA - Keluarga Alumni Institut Pertanian (KAINSTIPER) does support President Joko Widodo to save the world society from hunger and lack of nutrients which derive from food oil. President Joko Widodo has the huge responsibility to fulfill the world needs on palm oil. This is part of Indonesia’s responsibility as the biggest palm oil producer in the world.
The government should also pay attention to those people who were in line to get bulk palm cooking oil in many regions and should holistically improve the governance without ignoring any side, including the smallholders in national scale. After President Joko Widodo temporarily banned crude palm oil (CPO) and its derivative exports by the late of April 20222, palm cooking oil is now easily found and got in the society. The celebration of Idul fitri 1443 Hijriah in Indonesia ran with gladness in many regions.
KAINSTIPER was happy and congratulated by saying Happy Ied, 1443 Hijriah. We are sorry from the bottom of our hearts to every citizen of Indonesia.
The Idul fitri celebration ran well and safely. This was part of the available stocks of palm cooking oil in the society. In the fasting days and heading to Idul fitri, the people’s need significantly increased on daily needs namely palm cooking oil as same as the increasing needs on vegetable oil in the world, namely palm oil.
As the biggest CPO producer in the world, Indonesia is the only hope for the consumers in the world and in Indonesia to fulfill the increasing needs because the lack of CPO, because of the increasing demands, would drastically increase CPO selling price.
It happened after CPO and its derivative export ban ran by the late of April. CPO selling price in the world significantly increased up to US$ 1.634/ton, Friday (29/4). The export ban by President Joko Widodo was directly responded by the world by the lack of CPO supply in the world. This referred to Indonesia as the biggest supplier for palm oil needs in the world which reached 85% together with Malaysia.
The latest situation is that the trade is running good globally. Many CPO users calculated the holidays of trade because of Idul fitri. Their stocks were enough. But it would be in shortage for too long if the export ban keeps running by Indonesia. “The consumers globally would have the same situation. Some time ago, many were in lines to get bulk palm cooking oil,” Chairman of KAINSTIPER, Priyanto PS explained.
He continued, CPO and its derivative export ban which supply the needs in Indonesia, should be in trade for the world society, including to fulfill the export demands. As the biggest CPO producer in the world, Indonesia has its obligation to help the world to get food oil which is the most effective and efficient one to be consumed, which is, palm oil.
“Just like what President Joko Widodo promised to fulfill palm cooking oil needs nationally and it is enough for the people of Indonesia, he should revoke the export ban. The goal is that the palm cooking oil consumers whole over the world could get their life needs to consume palm cooking oil from Indonesia,” Priyanto said.
Palm Cooking Oil Plays Important Roles for the Life Globally
The Government of Indonesia should notice that CPO and its derivatives play important roles for the world and Indonesia. That is why palm cooking oil from Indonesia should be regulated closely within major priority on the needs in Indonesia.
“The Government of Indonesia should improve palm cooking oil governance nationally. The logistic markets that the people need should be improved to be better. The goal is that the supply would be equal and the people could easily get it in economic price,” he said.
The Government of Indonesia could facilitate the logistic infrastructures which might be in a mass by taking Bulog and Enterprises logistic network. This could guarantee bulk palm cooking oil supply to the people (in remote areas) in need. The government’s companies (PT Perkebunan Nusantara) which cultivate palm oil plantations should have functions to provide CPO supply nationally.
“If logistic infrastructures are nationally improved, from the upstream, they could supply CPO to the downstream sectors to produce bulk palm cooking oil. It would directly fulfill the needs nationally. The government should immediately build integrated palm oil industries from the upstream to downstream sectors,” he said.
For having the integrated ones, the Government of Indonesia could manage the better needs in this country. If many are lack of the needs, the government could assign the Enterprises to provide what the people needs, as the major priority.
Expensive Palm Cooking Oil as same as the Expensive CPO in the World
Priyanto PS mentioned that the expensive CPO in the globe delivered distortion in many palm oil plantations, such as, the increasing price of production infrastructures, vegetable fuel which increased CPO production cost. In short, every increasing CPO price in the world, it increases CPO production costs in Indonesia.
As the result, windfall profit in palm oil plantation should keep going on to pay the fertilizers, vegetable fuel, and other production infrastructures in expensive price. Besides, the mill which directly has something to do with the people’s life namely the smallholders, should buy smallholders’ fresh fruit bunch (FFB) production in expensive price or at least, it is adjustable with CPO price globally, based on the regulation of Ministry of Agriculture, through the local plantation agency. “It means, not many companies can enjoy every windfall profit from the increasing CPO selling price but it will be divided into CPO production supply chain,” he said.
That is why every government officer should understand CPO business. The understanding should be well distributed on palm oil trade. Every increasing price in the globe would directly have something to do with production costs, impacts to the increasing palm cooking oil price nationally. It needs to understand to know every block in palm cooking oil procurement in the society.
The market distribution network – from the mill to distributors, big agents, small agents, small shops, and micro and small business – should be put in data and the needs should be well performed. Palm cooking oil needs in fasting days would be increasing because many impromptu sellers do sell in the fasting days. “The needs would massively be increasing namely in fasting days and Idul fitri,” he said.
If the increasing leap of palm cooking oil needs, namely from the impromptu sellers and small business, is well known, the housing needs would be easily fulfilled because CPO production in the domestic would be able to fulfill the needs in the society though it highly increases.
“By having massive capacity of mills and palm cooking oil factories, palm cooking oil needs in this country would be fulfilled. The major issues are at the market needs, trade mechanism, economic selling price. The government should get the data and immediately improve these,” he said.
The Smallholders Are in Misery; Mills Are Not Operating because of CPO Export Ban
As the biggest CPO producer in the world, the market needs in the globe would be fulfilled by sustainable producers in many palm oil plantations, namely the smallholders which their lives depend on their harvests. The process is that smallholders’ FFB should be in harvest in every single day, then sold to the mills, and the outcome should be put in CPO storage tanks. These are daily process and the result should be sold to palm cooking oil factories and CPO traders to be exported.
For many palm cooking oil factories and CPO traders could not export, the mills are not operating. CPO trade from the mills drastically decreased. As the result, mills’ production got decreasing and smallholders’ FFB purchase did too and they stopped cultivating. “Just like what President Joko Widodo instructed, the smallholders’ harvest decreased and the mills are not operating because CPO storage tanks are full. If CPO and its derivative export ban is not immediately revoked, the smallholders would be the victims because the mills stop operating,” he said.
Priyanto PS also mentioned, if CPO is storage for too long, the quality would be broken and would not be good to be consumed. If this happens, food oil supply in the globe would be decreasing for too long because food oil supply would only be fulfilled by palm oil. In the long term, there would be lack of palm oil supply and would cause hunger and lack of nutrients in the world. This would be very difficult to improve.
According to US Department of Agriculture (USDA), National Nutrient Database for Standard Reference (2016), palm cooking oil is part of vegetable fat and oil which has 100 grams of nutrients from palm oil and there is food energy, unsaturated fat, single unsaturated fat, vitamin E (tocopherol), and vitamin K (phylloquinone).
Based on the data, palm cooking oil is good for the health, such as, support the stable blood sugar, minimize congestive heart failure, decrease low-density lipoprotein (LDL) or ‘bad’ cholesterol, and increase high-density lipoprotein (HDL) or ‘good’ cholesterol. Palm cooking oil also helps integument system on the skin, hair, nail, and others, good for the reproduction system and baby, helps to increase the quality of sperm, muffle the pain when in period, helps to develop fetus, supports other men’s health.
The nutrients and vitamin in palm cooking oil, he continued, are parts of the main choice of the world to consume food oil from CPO – base. It is part of people’s needs in the world and the needs keep increasing in every year.
“President Joko Widodo should immediately save the world society by revoking the export ban. By supplying the world needs, Indonesia takes part to save the world from hunger and lack of nutrients in the future,” he said.
He also explained, by delivering CPO export, it would play the roles to save the world society and support palm oil industries and the smallholders nationally. “We have to have the same consciousness that palm oil products from Indonesia could globally supply the needs. We have to be brave and be the main key player to arrange the trade of this commodity globally. The patriots of this nation should have nationalism to be able to stand on his feed and decide the sustainable development criteria based on principles nationally but not giving up to be regulated by others,” he said.
Keluarga Alumni Instiper Yogyakarta is part of Civitas Alumni Instiper Yogyakarta. located in Daerah Istimewa Yogyakarta Province, Indonesia, Institus Pertanian Yogyakarta is the institution in Indonesia that focuses to develop the plantations. Instiper was established on 10 December 1958 by Yayasan Pendidikan Kader Perkebunan. In the beginning, Instiper was Sekolah Tinggi Perkebunan.
KAINSTIPER is as the government’s partner and encourages to advance the education in agriculture and plantation – base. Having about 14.000 members, 605 of them or about 8.400 men work at palm oil plantations in the world and in Indonesia. That is why KAINSTIPER always encourages the agricultural and plantation development namely palm oil in Indonesia.
Chairman of KAINSTIPER, Priyanto PS is in his second period since 2018, and the General Secretary is Noor Falich.
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