InfoSAWIT, JAKARTA -  Though the CPO got cheaper up to US$ 485/ton in the end of October 2018, the government of Indonesia anticipated the bad news through some programs, such as, publishing two way – policy in palm oil sector within the goal, to maintain the competitiveness of palm oil Indonesia in the global market.

According to Coordinator Minister in Economy, Darmin Nasution, the cheap CPO from Indonesia is part of the global commodity and many sides should notice it. It got cheaper reaching about 24% from US$ 636/ton to be US$ 485/ton by the end of October 2018.

That is why the government supports it by improving its governance to anticipate something bad may happen again. The two way – policy covers the offering and demanding aspects which are supported by the domestic market power.

The bargaining aspects cover palm oil moratorium policy, land mastery solution in the forest region or penyelesaian penguasaan tanah dalam kawasan hutan (PPTKH), One Map Policy, strengthening the ISPO (Indonesian Sustainable Palm Oil), and the adjustment of export citation. While the demanding aspects cover the optimal B20 program, and the downstream policy.

Besides Darmin supported to increase the welfare of the smallholders by running the smallholders’ replanting program (SRP) which has been running since 13 October 2018. Through the SRP, the government hoped to optimize the smallholders’ harvests to be the important element to succeed sustainable palm oil plantations.

To increase the work of SRP, the government supported Palm oil Plantation Fund Management Agency (PFMA) to help the fund in SRP. The target in SRP could be 50 thousand hectares in November 2018 from the first target, 14 thousand hectares. (T1)

This article once published in InfoSAWIT, November 2018