Here are the Strategies to Get Palm Cooking Oil at Rp 14.000/liter

Doc. InfoSAWIT
Here are the Strategies to Get Palm Cooking Oil at Rp 14.000/liter

InfoSAWIT, JAKARTA – Palm cooking oil is difficult to be sold at Rp 14.000/liter because crude palm oil (CPO) as the material is still expensive in the globe. Actually if the government wants to get cheap palm cooking oil, the government should intervene palm oil plantation companies.

Senior practitioner in palm oil business in Indonesia, Maruli Gultom said, palm cooking oil needs nationally reached 200 million liters or about 160 thousand tons of CPO per month. The material could be from PT Perkebunan Nusantara (PTPN) which produced 4% of the total CPO production nationally.

"The best solution for palm cooking oil needs in this nation could be from CPO that PT Perkebunan Nusantara (PTPN) produced for the company belongs to the country,” Gultom recently said to InfoSAWIT.

Palm oil observer in national scale, Ignatius Ery Kurniawan thought, the government should instruct every CPO producer belonging to the country should be as palm cooking oil producer by deciding CPO selling price at Rp 9000/kg.

By implementing it, palm cooking oil selling price could be at Rp 14.000/liter. This is the sacrifice of the government’s company for the people to realize it.

But Ery continued, according to the auction by PT Kantor Pemasaran Bersama Nusantara (KPBN), CPO auction is at Rp 13.000/Kg. “If the Government of Indonesia is serious to assign PTPN to supply CPO needs according to when domestic price obligation ran or at Rp 9.000/liter, the cheap CPO would get cheap palm cooking oil at Rp 14.000/liter,” Ery who was once as the Secretary III of Indonesian Palm Oil Board in 2009, mentioned.

He who was as Executive Secretary of Asosiasi Produsen Oleochemical Indonesia (Apolin) when it was established said, PTPN should start providing CPO needs for the markets in this country namely in DMO based on what President Joko Widodo instructed. Do not get its own profits and sacrifice the smallholders.

He who is studying in Master of Agribusiness at Institut Pertanian Bogor also mentioned, the cheap CPO is the main condition to produce palm cooking oil in cheap price so that the people could buy it. The government should deliver special assignment to PTPN as CPO producer and Palm Oil Plantation Fund Management Agency (PFMA) as subsidy provider if there is price gap. “If the numbers are not enough, the government could buy FFB from the smallholders in normal price and PFMA should subsidize the fund,” Ery said.

The good governance with good and bond regulation would realize the economic palm cooking oil just like what President Joko Widodo instructed. “There should be strong will and focus to what the people’s need in the first place,” he suggested it to PTPN.

The trade should derive from cheap supply to manage the supply chain so that the people could buy it at Rp 14.000/liter.

"Do not waste the time to supply cheap CPO to produce palm cooking oil for the people of Indonesia because PTPN belongs to the people as well. It has to be able to do it,” Ery said. (T1)