InfoSAWIT, JAKARTA –The plan to subsidize biodiesel industries could be misuseed. Executive Director of Indonesia Development Monitoring, Fahmi Hafel said, it could be reaching tens of billion rupiah.

Fahmi said, the Crude Palm Oil Supporting Fund (CSF) has been running for about two years and it could be tens of billion rupiah. It could be potential to be given to fake biodiesel industries,” he said in Jakarta, last Saturday.

He thought, it will not be different from ‘Bantuan Likuiditas Bank Indonesia (BLBI)’ for it was from the internal cash which had been collected and distributed to vague goals.

The CSF has made losses for some sides, starting from CPO producers, derivative producers in abroad, the service in port, and the suppliers of palm oil in the domestic, including the country itself.

He said, the CSF has pressed the domestic price and made disincentive production for the CPO and derivative producers. In CPO case particularly, it presses the fresh fruit bunch (FFB) price which the smallholders produce. “In implicit, FFB has the CSF though the smallholders do not export,” he said as quoted from Bisnis.

The decreasing CPO and derivative production makes them also decrease. This also makes the needs of imports not fulfilled. If the CSF in Indonesia makes disrupton of price, the importers will buy CPO and derivative products in more expensive than paying the export tax. “The decreasing export volume is also a loss for the stakeholders in the port and the lost of exchange,” he said.

So the government should consider to give subsidy to biodiesel industries. The subsidy derives from many sides, including the smallholders who directly and indirectly pay the export, he said. (T4)