Minister Luhut Signs Decree To Start Auditing Palm Oil Firms

Jakarta – Maritime and Investment Coordinating Minister Luhut Binsar Pandjaitan said that he had signed a decree on the requirement to audit palm oil companies operating in Indonesia.

“I signed the decree today. With the decree, we’ll start auditing the palm oil companies. It will be implemented by the finance and development supervisory board (BPKP),” Minister Luhut said after inaugurating the expansion project of PT Nestle Indonesia in Karawang, West Java province on Tuesday, 07 June 2022.

Luhut has been assigned by President Joko Widodo (Jokowi) to tackle the stubborn problem of cooking oil, especially in Java and Bali under a coordination with the economic coordinating ministry, trade ministry, industry ministry and other related institutions.

The audit is aimed to evaluate the industrial governance of cooking oil from upstream to downstream. It was driven by the rising prices of cooking oil recently.

According to Minister Luhut, the supply of cooking oil at domestic market has been improving. But he said that there was still a problem with its distribution. On the upstream side, the price of fresh fruit bunches (FFB) at the level of farmers was still below expectation.

The former minister of politics, law and security (Polhukam) hoped that within the next one or two weeks the price of FFB from the farmers will reach Rp2,500 per kilogram. “The FFB price will rise after implementing the flush out program,” he said.

The program will make possible the exports of 2.0 million tons, now available as stock. “The government has been continually seeking ways to improve the welfare of farmers, in line with the rising public need at downstream sector,” Luhut said during a press conference on Monday, 06 June 2022.

He said that the government has also ensured the cooking oil producers, distributors, and retailers that they can get margin according to their production services.

He noted that the government had issued 251 export licenses (PE), with CPO export reaching 302,000 tons as of early June this year.

“The government will keep monitoring the export performance of palm oil. We’ll take all necessary steps to expedite the rise of FFB if it is still too low,” he said. (*)

Source: TEMPO.CO | Featured image via