The Indonesian Palm Oil Association (GAPKI) has proposed that Indonesia should have a special institution with full authority to manage its palm oil industries from upstream to downstream.
GAPKI Media Relations Head Fenny Sofyan said that the establishment of such special agency is based on the consideration that the palm oil is the most strategic commodity for the national economy of Indonesia, which is the world’s largest producer and exporter of palm oil.
“Currently, the palm oil industries are under the authorities of at least 30 ministries and institutions. As a result many policies overlap and create legal unclarity and legal uncertainty in the industry,” Fenny said during the Focus Group Discussion (FGD) on “Direction of Indonesia’s Food Policy After the General Elections” in South Jakarta on Friday (9/2).
She said that despite its significant contribution of foreign exchange to the country since 2006, the palm oil industries have been continually hindered by legal uncertainty, resulting in slow growth of investments for expansions.
“The legal uncertainty as a result of overlapping regulations from many institutions in charge has really obstructed investments in the palm oil industries,” she said.
Fenny also reminded that during the last five years Indonesia has seen a stagnation in palm oil production, while consumption has been continually rising, especially as a result of the implementation of bioenergy program.
“In 2022, our total domestic consumption amounted to 27 million tons, of which 9.0 million tons for biodiesel production and the rest for foods and oleochemical. If such trend continues, it will affect our export as the source of foreign exchange,” said Fenny.
Considering all of the facts, she expressed the hope that the government will realize one-stop policy under one integrated institution in managing the palm oil industries. Indonesia should learn from its historical lessons in the past when it was the world’s largest producers of sugar and salt, but now the two commodities have faded away.
The palm oil industry started growing in 1980 and since 1986 or 35 years ago it has steadily seen a robust growth. “So, there should be a clearly designed policy, roadmap of 10 years or 50 years ahead,” she said.
“There should be a strategy to increase production, and fulfill consumption. There should be also efforts to maintain prices and stocks. All such strategies and policies can be effectively and efficiently implemented under one integrated institution,” said Fenny. (*)
Source: news.majalahhortus.com