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<\/p>\nJAKARTA \u2013 The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono has reminded that the next Indonesian government should realize the very\u00a0 important role of palm oil in the country\u2019s national economy and design more conducive regulations to allow the palm oil industry surviving and thriving. \u00a0 <\/p>\n
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\u201cThe palm oil is crucially important for Indonesian economy. It\u2019s clearly a real fact. We\u2019re facing a constant series of negative campaigns against our palm oil commodity at home and abroad. Such campaigns will never stop as there are other vegetable oils as competitors to our palm oil. So, the new government should realize such condition and take all necessary policies to help advance the palm oil industry,\u201d Eddy said during a public discussion on palm oil organized by Kompas<\/em> daily<\/em> in Jakarta on Wednesday (17\/01\/2024).<\/p>\n The palm oil industry has proven its contribution in the national development of Indonesia. Besides helping the development infrastructure, which has driven up regional economies, its export of crude palm oil (CPO) in 2022 reached US$39.07 billion or around Rp600 trillion, which is the highest in the history of palm oil industry.<\/p>\n \u201cIndonesia shouldn\u2019t repeat the history of its commodities. We used to become the world\u2019s largest exporter of sugar, but now we\u2019re an importer. The sugar history should not be repeated in our palm oil industry. We should maintain our position as the world\u2019s largest producer and consumer of palm oil and avoid becoming an importer,\u201d he said.<\/p>\n Eddy also said that palm oil industry players are confused over the overlapping regulations on palm oil industry in Indonesia. He cited the example of the requirement for plantation companies to set aside 20% of their plantation areas for smallholders. \u201cThree ministries applies different regulations on the 20% allocation implementation. As a result, the industry players are confused,\u201d he said.<\/p>\n Based on the agriculture minister regulation (Permentan) No.26\/2007 on guidelines of getting plantation business licenses, companies which have the IUP or IUP-B licenses are obliged to allocate at least 20% of their total plantation areas for smallholders.<\/p>\n “The agriculture ministry, the agrarian and spatial planning ministry\/national land agency (ATR\/BPN, and environment and forestry ministry apply different requirements. As industry players, we\u2019re confused on \u00a0which one we should follow,” said Eddy.<\/p>\n Eddy noted that palm oil industry players have wanted that all prevailing regulations should be in line and not overlap. \u201cWe need a better governance in palm oil industry. That way, the palm oil industry can survive and thrive to contribute greatly to the Indonesian economy,\u201d he said. (*)<\/p>\n