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Ministry of Agriculture Coordinates with Smallholders and Plantation Agencies about CPO Export Ban



Ministry of Agriculture Coordinates with Smallholders and Plantation Agencies about CPO Export Ban

InfoSAWIT, JAKARTA – Ministry of Agriculture did coordination with every stakeholder in palm oil plantation in Indonesia, Monday (16/5/2022).

Minister of Agriculture, Syahrul Yasin Limpo said, the coordination is about to discuss the latest dynamic in palm oil plantations nationally. It was revealed that many smallholders are difficult to sell their fresh fruit bunch (FFB) and many mills are difficult to sell their crude palm oil (CPO) production.

Chairman of Asosiasi Petani Kelapa Sawit Indonesia (APKASINDO), Gulat Manurung said, many smallholders in palm oil plantation centers are difficult to sell their FFB and should be in line for three days because some mills rejected to buy it.

“The FFB trucks should be in line to the mills and could be for three days. This made victims,” he said in the meeting that InfoSAWIT joined.

He also mentioned, CPO and its derivative export ban caused smallholders’ FFB purchase by many mils cheaper than what the government decided.

Vice Chairman II in Public Policy Indonesian Palm Oil Association (IPOA), Susanto said, the mills do not purchase smallholders’ FFB because they are difficult to sell their CPO production. “It happens for the export ban and minimized FFB purchase. Most of storage tanks are almost full,” he said.

For the export ban, as Head of Plantation Agency East Kalimantan Province, Ujang Rachmad said, his agency, governor and his officials should confirm that the mills should buy smallholders’ FFB based on what the regional government decided. Rachmad also mentioned, it is urgent to revoke the export ban to know every detail about the latest issues in palm oil plantation. “Palm cooking oil issues can be solved by purchasing CPO within the subsidy from the government through Palm Oil Plantation Fund Management Agency,” he said.

Minister of Agriculture, Syahrul Yasin Limpo mentioned his ministry rejected the export ban ever since the meeting held with Coordinator Ministry in Economy.

But the government decided it to fulfill palm cooking oil needs in Indonesia. Syahrul urged many stakeholders in Indonesia to get the best solution to help the smallholders. “We are always ready to deliver help to the governor and regional districts to purchase smallholders’ FFB maximally. We would fight for it – to revoke CPO export ban,” Syahrul said. (T1)


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