Four Smallholders’ Notes After Revoking Export Ban

Four Smallholders’ Notes After Revoking Export Ban

InfoSAWIT, JAKARTA – After crude palm oil (CPO) and its derivative and palm cooking oil export ban ran for three weeks, the smallholders got the impacts from their cheap selling price of fresh fruit bunch (FFB) decreased up to 40% - 70%, and the mills could not buy smallholders’ FFB because their storage tanks are about to be full, President Joko Widodo finally re-opened CPO export that would be effective on Monday (23/5/2022).

But it is not about revoking export ban. The smallholders’ organizations, such as, Serikat Petani Kelapa Sawit (SPKS), Apkasindo Perjuangan, Forum Petani Kelapa Sawit Berkelanjutan Indonesia (FORTASBI), Asosiasi Petani Kelapa Sawit Perkebunan Inti Rakyat (ASPEKPIR), Perkumpulan Forum Petani Kelapa Sawit Jaya Indonesia (POPSI), Serikat Petani Indonesia (SPI), Jaringan Petani Sawit Berkelanjutan Indonesia (Japsbi) declared four things to get improvement in palm oil industries nationally.

The first, the government through the fund in Palm Oil Plantation Fund Management Agency (PFMA) should accelerate to develop independent smallholders’ institutions, and the plantation companies should have partnership with the smallholders.

The second, for all these years, the smallholders provided materials (to produce crude palm oil) but there is no smallholders’ institution that has had their own mill to process fresh fruit bunch (FFB) to be a product, for example, palm cooking oil. It means, this is the right moment for the government to support smallholders’ organizations (institutions) to have their own mills by advantaging fund in PFMA.

The third, the government needs to confirm that palm cooking oil governance runs well from the upstream to downstream sectors. “There has to be domestic market obligation and close supervision. The companies should commit to provide materials (to produce palm cooking oil). Palm cooking oil distribution system should exist so that the people can buy it, just like gas procurement system. It if is needed, one government’s institution should be established, such as Bulog, to confirm that palm cooking oil is available in the society,” the smallholders noted, as in the official statement to InfoSAWIT, Thursday (19/5/2022).

The fourth, PFMA has been running for 8 years, or since 2015. The citation in the period could be reaching about 137,283 billion rupiah. 80,16 percent of the fund were allocated for biodiesel subsidy. “The smallholders got 4,8 percent through smallholders’ replanting program. By this situation, the government through PFMA should allocate the fund more to the smallholders fairly,” the smallholders noted. (T2)