InfoSAWIT, NUSA DUA –To face the palm oil industrial challenges, the government has made and developed the programs to maintain palm oil as the strategic economy in Indonesia.

Coordinator Minister in Economy, Darmin Nasution said, his side has made 2 packages of policy to maintain the palm oil competition.

The first is that the policy that regulates the stock: 1) Palm Oil Moratorium; 2) Conflict Settlement in the Forest Regions (PPTKH); 3) One Map Policy; 4) Strengthening ISPO; and 5) Out Fee Adjustment

The second is that the policy that regulates about palm oil demands, covering: 1) Advantaging B20 program; 2) the policy about CPO demand for the domestic downstream products.

“Besides the two packages of policy, the government has direct policy to help the smallholders to increase their welfare through the replanting program which is believed to increase the productivity,” he said in the Indonesian Palm Oil Conference (IPOC) 2018 and 2019 Price Outlook in Nusa Dua, Bali, where InfoSAWIT also attends, Thursday (1/11/2018).

He also said, the goal of the government is that the smallholders would not be the bankable debitors.

“So I do hope that Palm oil Plantation Fund Management Agency (PFMA) could put aside the mentality when giving the conditions to minimize the risk,  so that the smallholders who fulfill the conditions to get the loan in the replanting program are those who fulfill the conditions in the banks to get Kredit Usaha Rakyat (KUR),” he said.

Just like what the President told, he continued, PFMA should simplify the conditions to distribute and get the replanting fund. “The first is that I have instructed PFMA not to connect replanting fund with KUR from the banks. The second, it is hoped that in the end of this month, we could accelerated the smallholders’ replanting program that reaches about 14 thousand hectares to 50 thousand hectares. About 36 thousand hectares more could be realized in the end of this month,” he said.(T2)