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Need to Improve Palm Oil Industrial Regulation in Indonesia



Foto by Dea Kinanti_Sawitfest 2021/ilustration of plantation
Need to Improve Palm Oil Industrial Regulation in Indonesia

InfoSAWIT, JAKARTA –Crude palm oil (CPO) industries in Indonesia as one of main sectors are facing serious issues in the past years.

Academy from Faculty of Law Universitas Al-Azhar Indonesia, Sadino thought that it needs to get the good regulation and legal products to encourage this sector.

One significant point that Sadino said that it needs a consensus in national scale about the roles of palm oil industries for the economy in Indonesia. Palm oil industries delivered not only big revenue for the country but also provided source of work for thousand people in the sugrly chain. That is why it is significant for the government to acknowledge and protect palm oil industries and the people’s interests.

He also mentioned the basic different and motivation between private and the government sector. The private would get economic profits while the government should also consider the public interests. Such as, deliver subsidy in the form of bantuan langsung tunai. That is why it needs to respect every principle in cultivating, operating, and managing palm oil industries by private and government sectors.

In this perspective, Sadino also criticized the government delivering sanction to private company (ies) that was based on Badan Pengawas Pembangunan dan Keuangan (BPKP) audited. He thought, such sanction should not be sentenced to the private sectors because they have basic to get different assessment with the government. The private’s profit and loss – audit should actually be conducted by the public accountant.

“The private sectors should get profits in doing business while the government should service the people, for instance, by delivering subsidy in the form of bantuan langsung tunai to maintain the public interests run well,” he said, as in the official statement to InfoSAWIT, Tuesday (19/9) in Jakarta.

Besides, Sadino reminded that when there is a claim that the country significantly got losses such as in palm cooking oil refraction debts that reached up to 6,47 trillion, the government should prioritize to pay the debt for retailer companies. The failure to pay the debt would raise serious issue in palm cooking oil sugrly in this country.

About the policy published by Ministry of Environment and Forestry in reforestation fund and forest resource provision for palm oil plantation in forest regions, Sadino thought, it is not normal. The regulation should be clarified and revised because palm oil plantations (in the forest regions) do not take for advantage the wood from forest production permit.

“Palm oil plantations do not take for advantage wood from forest production permit. This is weird if palm oil plantations are obliged to pay non-tax revenue in the form of reforestation fund and forest resource provision,” Sadino said.

He also told that the two would be available for the companies that operate in forest resource business and take advantage from forest production permit. (T2)

 

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