Palm Oil Firms Asked To Move Headquarters to Indonesia

JAKARTA – Maritime and Investment Coordinating Minister Luhut Binsar Pandjaitan has stated that the government will audit all palm oil companies operating in Indonesia and require them to have their headquarters in Indonesia instead of abroad.

Minister Luhut made the statement after being assigned by President Joko Widodo (Jokowi) to improve the business governance of palm oil, especially to tackle the stubborn problem of cooking oil, which is mostly processed from the crude palm oil (CPO).

Responding to the statement, the industry ministry’s Agroindustry Director General Putu Juli Ardika stated that the plan to audit and oblige all palm oil companies to have their headquarters in Indonesia will open an opportunity to increase added value from the palm oil industry.

“With the new requirement we can further increase added value in the palm oil industry. If their headquarters are here instead of abroad, we’ll get potential higher added value,” Putu said in Jakarta on Monday, 30 May 2022.

Putu pointed out that in 2021, Indonesia earned a state income of Rp86 trillion from palm oil export levies, while palm oil taxes at more than Rp20 trillion.

“We got more than Rp100 trillion last year. It will increase if they are obliged to move their headquarters from foreign countries to Indonesia. Certainly, we’ll get higher tax income from those companies,” he added.

Putu noted that the economy of palm oil is very huge. “At least Rp750 trillion had been derived from the palm oil industry. Around Rp500 trillion of the total value is derived from the exports of palm oil and derivative products,” he said.

“We’re net exporter of palm oil and derivative products. Considering such potential, it is now necessary to get complete and accurate data of the industry, from upstream at plantations to the downstream industries to process CPO into various products, such as RBDP olein, RBDP oil, biofuel, oleochemical, and oleofoods,” he said. (*)

Source: sindonews.com | Featured image via forestsnews.cifor.org

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