InfoSAWIT, JAKARTA – To keep the crude palm oil (CPO) running in the global market, Palm oil Plantation Fund Management Agency agreed to take Crude palm oil Supporting Fund (CSF) until the end of 2019.

This is to maintain the CPO price in the global which directly influences the smallholders nationally. In addition the global CPO price is always in fluctuation. The CSF would run if there is certain better price.

Director of PFMA, Herdrajat Natawijaya said that his side has reported it to the President. “We believed that when CSF is 50% to take, the CPO would be cheaper. It means that the smallholders or the palm oil producers would get much cheaper,” he said in the Focus Group Discussion (FGD) Minyak Sawit Berkelanjutan: Diskusi Sawit Bagi Negeri Vol. 4 within the theme “Petani Butuh Keberlanjutan Harga CPO Naik” Thursday (26/9/2019) in Jakarta where InfoSAWIT did.

Big possibility is that the best time to run CSF is when the biodiesel mixture 30% to diesel (B30) program effective runs on 1 January 2020. At the time, there would be CPO to use because the volume would be increasing about 3 million tons compared to the volume in B20.

He also mentioned that not only the CSF, the running program, such as, smallholders’ replanting program (SRP) would always run. This year it would cover 30 thousand hectares. This is about to secure the supply for the B30 program.

“We would manage the supply and would influence the selling price and the smallholders could get the implication and there are some programs to focus the CPO price. Besides, to make the right policy, we would consolidate about the width of the smallholders’ areas, and the production,” he said.

Meanwhile to improve the supply chain from the smallholders/the increasing competitiveness program, PFMA has done some things, such as, to improve the fresh fruit bunch (FFB) price in the smallholders’ level besides improving the CPO demands. It needs to improve their supply chain and the increasing competitiveness in the factories.

“Besides the CPO price, the FFB price is determined by the capability of the factories to process the FFB to be CPO, the transportation costs, the long supply chain and the market,” he said.

The FFB supply chain from the independent smallholders to the factories, in general, would have the long process that involves, at least, unions, the groups, big and small agents, and the DO holders. The long process of supply chain decreases the profits of the smallholders because every supply spot would get profits from the FFB selling.

This happens for the lack of infrastructures. “So the programs to distribute the fund from PFMA are to improve the smallholders’ welfare by improving the supply chain process and to improve the competitiveness in the factories,” Herdrajat said. (T2)

About Diskusi Sawit Bagi Negeri:

Diskusi Sawit Bagi Negeri is an interactive discussion among the stakeholders nationally that presents the speakers from many backgrounds to give the whole description about palm oil. The goal is to give the right understanding about its existence and contribution to the country, social, and environment.

Diskusi Sawit Bagi Negeri is supported by PFMA, RSPO, and SPKS within the strategic media partner, Media InfoSAWIT and Palm Oil Magazine. The stakeholders, such as, the government, businessmen, researchers, organizations, social and environmental activists, and others are about to develop palm oil in Indonesia.

If you need more information, please contact us, Ignatius Ery Kurniawan by Handphone WA : 081284832789; e-mail: sawit.magazine@gmail.com