InfoSAWIT, JAKARTA – Asosiasi Petani Kelapa Sawit Indonesia (Apkasindo) urged the government not to postpone biodiesel case. It needs to immediately be taken to the court if every data needed has been got because many smallholders do worry about the future of biodiesel program and smallholders would be the victims.
“If there is case in biodiesel, we agree that the Attorney as legal institution should do its duty. If there is something wrong, it needs solution not to get multi-interpretation. Many would question (biodiesel) if the case is followed up or not. But do not postpone the case because it would not be good for smallholders,” Chairman of Apkasindo, Gulat ME Manurung said, as in the official statement to InfoSAWIT, Tuesday (26/9/2023).
He also reminded that biodiesel is the government’ program to get sovereignty in energy and palm oil could be absorbed in this country. domestic absorption is the key word to control crude palm oil (CPO) price in the globe and many smallholders got the advantages from the program especially when President Joko Widodo launched B30 and B35 program by the late of 2019.
This proved that four the last four years, smallholders’ FFB got more expensive as CPO price in the globe did. Data from Apkasindo showed that smallholders’ FFB price since the implementation of B30 got better to be Rp 1.800 -Rp 2.550 per kg or much better than the previous years, which was only Rp 700 -Rp 1.200 per kg.
He continued every party needs to be aware of biodiesel case because it would have domino effects for smallholders. As a matter of fact, related instance in biodiesel program, such as, Ministry of Finance, Coordinator Ministry in Economy, PT Pertamina, Palm Oil Plantation Fund Management Agency (PFMA), Ministry of Agriculture, would evaluate the program if it hits legal issue. It would postpone CPO absorption to produce fame. It probably happens that the program would not be continued.
“If biodiesel program is not available, 13, 5 million metric tons per year would not be absorbed. The numbers reached almost 70% of CPO production in Malaysia which reached 18,8 million metric tons in 2022,” he said.
He delivered example that CPO got cheaper when biodiesel case was blown up. CPO tender at PT Kharisma Pemasaran Bersama Nusantara (KPBN) got cheaper from Rp 11.300 per kg to be Rp 9.800 per kg. It became Rp 10.800 per kg and it was once Rp 10.200 per kg.
“The cheaper CPO connects with 17 million smallholders. The bad issue in palm oil would have something to do with (palm oil) industries in the globe and in Indonesia,” he told.
Every party needs to maintain the sustainability of palm oil. Just like the Attorney of Riau Province with its program - Jaga Zapin (jaga zona perekonomian, perindustrian dan perkebunan). Riau Attorney launched “Kebijakan Penegakan Hukum Kolaboratif dalam Mendukung Investasi dan Peningkatan Perekonomian Masyarakat di Sektor Perkebunan Sawit".
The two programs are successful in Riau Province. The Head of Riau Attorney Dr. Supardi, SH., MH., really maintains the economy of Riau. 37% of the economy in the province are from palm oil upstream to downstream sectors, as Manurung said.
Riau Attorney invited 12 attorneys and 12 regents and majors in the province to support palm oil economy by signing memorandum of understanding.
“It means, the combination of Jaga Zapin and collaborative law enforcement make smallholders’ FFB price in Riau the most expensive in Indonesia for the past six months and the only province that has independent smallholders’ partnership as plantation agency of Riau decided,” Manurung said.
That is why he reminded that the government needs to appreciate palm oil industries. The economy in Indonesia survives and runs fast because of these industries. Palm oil is the ‘general’ of economy in Indonesia. (T2)
