JAKARTA – The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono has stated that the rampant cases of palm oil mills operating without having own oil palm plantations and mini-scale mills relying on petty supply of mostly loose palm fresh fruits (locally known as brondolan) in a number of regions have disrupted the existing partnerships between companies and smallholders.

“The unavailability of loose palm fruits has caused the calculation of extraction rate in Permentan (agriculture ministry regulation) on FFB (fresh fruit bunches) purcahse is not applicable due to the factor of the loose palm fruits,” Eddy Martono said recently.

GAPKI has proposed to the government to quickly discipline the palm oil mills without plantations based on the Permentan No.98/2013. Reportedly, the agriculture ministry’s plantation directorate general has responded to the proposal by visiting the no-plantation mills in East Kalimantan and South Sulawesi provinces.

“The director general has issued a circular letter to related regional governments, instructing them to discipline the licenses of the no-plantation mills and the mini-scale mills,” said Eddy.

GAPKI has also sent letters to economic coordinating minister, agriculture minister, and industry minister, asking for the licensing of new mills strictly based on the Permentan No.98/2013.

Permentan

Based on  Permentan No.98/2013, especially its article 11 verse 1, the plantation business licenses (IUP, including mills) is given based on the requirements that owners of palm mills should supply the palm fruit bunches for their mills at least 20% from their own plantations and the rest can be fulfilled by purchasing from other companies or smallholders through partnerships based on sustainability principle.

Its verse 2 rules that the other companies and smallholders mentioned in verse 1 are those having no mills and not yet in partnerships with companies that operate own mills. (*)

Source: sawitku.id