JAKARTA – Maritime and Investment Coordinating Minister Luhut Binsar Panjaitan has admitted that overlapping regulations applied by a number of ministries had caused inefficiency in the palm oil industry. The inefficiency has resulted in a potential loss of state income at Rp172 trillion from the palm oil sector.
“We see the inefficiency in the palm oil industry which causes a potential loss of state income at Rp172 trillion. We’re now pursuing this,” Minister Luhut said during Business Matching 2024 in Bali on Thursday (07/03/2024).
Minister Luhut was referring to the report filed by the finance and development supervisory board (BPKP) Chairman Muhammad Ateh who stated that they found inefficiency in several industrial sectors, including palm oil.
According to Luhut, one of the causes of the inefficiency was regulatory problems in a number of ministries related to palm oil businesses. He will convene a meeting to discuss the problems.
“We’ll invite the ministries involve in the palm oil industry to discuss it. Why they apply regulations which hinder the business. One regulation obstructs the other ones. Why? This has been our weakness,” said Luhut.
He said that he had reported the regulatory problems to President Joko Widodo (Jokowi). ”I’ve reported it to President (Jokowi). The regulations applied by the palm-related ministries are overlapping. They obstruct each other,” he said.
Source: sawitkita.id