{"id":28864,"date":"2024-11-06T03:20:38","date_gmt":"2024-11-06T03:20:38","guid":{"rendered":"https:\/\/gapki.id\/en\/?p=28864"},"modified":"2024-11-13T03:24:49","modified_gmt":"2024-11-13T03:24:49","slug":"palm-players-pin-high-hope-on-govt-to-settle-lasting-problems","status":"publish","type":"post","link":"https:\/\/gapki.id\/en\/news\/2024\/11\/06\/palm-players-pin-high-hope-on-govt-to-settle-lasting-problems\/","title":{"rendered":"Palm Players Pin High Hope On Govt To Settle Lasting Problems"},"content":{"rendered":"

The three-day 20th<\/sup> Indonesian Palm oil Conference (IPOC) starting this Wednesday in Bali should be overshadowed by the Oct.23 revelation by Hashim Djojohadikusumo, the younger brother of President Prabowo Subianto, that the government had uncovered around 300 palm oil companies which operated illegally.<\/p>\n

\"\"<\/a><\/p>\n

\u201cWe could soon collect from the rogue plantation companies Rp 300 trillion (US$20 billion) in tax payment arrears and penalties and this has been reported to President Prabowo,\u201d Hashim, the chairman of the advisory board at the Indonesian Chamber of Commerce and Industry (Kadin), told a business conference.<\/p>\n

The additional revenues should be a very good news for the new government which has to spend almost 44 percent of its estimated total revenues on debt interest and debt amortization alone next year.<\/p>\n

But more detailed information is still needed on how long had those illegal companies have operated and how could 25 of the firms even did not have any taxpayer registration identification numbers and another 15 even did not own any accounts at banks in Indonesia. Without further clarification, Hashim\u2019s statement could raise many questions about the effectiveness of the government oversight of the industry. How could the companies have so far made domestic and export transactions without taxpayer identification or even local bank accounts?<\/p>\n

As if Hashim\u2019s shocking remarks are not punitive enough, Minister of Agraria and Spatial Planning\/ Head of the National Land Agency, Nusron Wahid told the House of Representatives on Oct. 30 that the government also had uncovered 2.5 million hectares of palm oil cultivation operated by 537 palm oil companies which have plantation business licenses but do not own the Right to Cultivate land title.<\/p>\n

Wahid did not elaborate where those 537 companies are located or why such irregularities occurred or how long they have operated but said those illegal oil palm firms were uncovered between 2016 and 0ctober 2024. The troubling question is, how could the local administrations have been unaware of those illegal plantation companies?<\/p>\n

\u201cThe BPKP (Development Finance Comptroller) is now calculating how much tax penalties would have to be imposed on those companies. But beware that even if those companies would pay up their tax penalties would not be entitled to obtain the Right to Cultivate,\u201d Nusron, Golkar politician, added.<\/p>\n

The Bali conference should be a good opportunity for government officials and members of the Indonesian Palm Oil Association (Gapki) to clarify those controversial official statements, otherwise the reputation of the whole industry, which has played a very important role in our economy, would remain tarnished and questionable internationally in terms of sustainability commitment.<\/p>\n

Allowing such negative information to linger on could validate the perception as to just how bad has been the public sector and corporate governance of the country\u2019s natural resources, notably the lucrative palm oil industry. Worse, inaction and failure to address this issue will prohibit the President\u2019s efforts in attaining 8 percent annual economic growth and will likely harm efforts in achieving food security and energy self-reliance.<\/p>\n

As the world\u2019s largest producer, with an estimated 16.8 million ha of oil palm plantations involving around 4 million smallholder farmers, Indonesia is in a strong position to lead the industry and shape the market globally. Further, the country is richly endowed with land suitable for oil palm plantations and is still able to increase its palm oil output.<\/p>\n

What is happening now reminds us of the time in the midst of the cooking oil debacle with skyrocketing prices in 2022. Then-coordinating maritime affairs and investment minister Luhut Pandjaitan set up a special task force for palm oil governance improvement and state revenue optimization to make a nation-wide comprehensive audit and due diligence on palm oil palm plantations.<\/p>\n

Then in 2023, Luhut revealed that the due diligence uncovered about 3.1 million ha of oil palm plantations cultivated in forest areas. However, he stated the oil palm estates would not be closed down, but would instead be legalized and put into the tax system, as well as falling under the supervision of the relevant ministry and government agencies. The tax and administrative penalties were still calculated by BPKP.<\/p>\n

It is still not clear whether the Rp 300 trillion additional revenues Hashim cited to be collected from 300 palm oil companies are related to the results of Luhut\u2019s due diligence and audit task force and Nusron\u2019s statement on the 537 palm oil fi rms, which did not own the Right to Cultivate land title.<\/p>\n

Even now, the palm oil industry is suffering business uncertainty caused by the series of stringent antimarket policies such as export quotas, a domestic market obligation introduced in early 2022 to stabilize the cooking oil price at the government-fixed level after the prices of palm oil skyrocketed due to the massive disruption in the global supply of edible oils.<\/p>\n

Palm oil has and will continue to play an increasingly vital role in the economy as it employs more than 17 million workers and involves around 4 million smallholders, but the government urgently needs to reform the governance of the industry. There is no other way to sustain the palm oil benefi ts for the whole economy but for the government to improve its regulatory framework and governance by reducing red tape and strengthening policy certainty and predictability.<\/p>\n

Given the complex structure of the palm oil industry associated with formidable longstanding problems and its vital economic role to the country, it is essential for the government to seek ways to address the longstanding unresolved and recurring issues the palm oil industry has been facing.<\/p>\n

President Prabowo himself often stated during his presidential campaign earlier this year that he would further develop palm oil not only as a major source of cooking oil and numerous other consumer goods, but also biodiesel in light of supporting Indonesia\u2019s transition to renewable energy.<\/p>\n

The Bali conference should be used as an effective forum for vigorous consultation on how to improve the government\u2019s institutional capacity and the regulatory framework for the industry to provide a coherent support system.<\/p>\n

Other priority improvement imperatives in palm oil industry include building inter-agency coordination and a clearing house to navigate policy and institutional intricacy toward the amicable settlement of longstanding palm oil problems, as well as creating a concerted intersectoral forum to develop a comprehensive road map and strategic plan for palm oil industry development. (By Edi Suhardi and Agam Fatchurrochman, <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The three-day 20th Indonesian Palm oil Conference (IPOC) starting this Wednesday in Bali should be overshadowed by the Oct.23 revelation by Hashim Djojohadikusumo, the younger brother of President Prabowo Subianto, that the government had uncovered around 300 palm oil companies which operated illegally.<\/p>\n","protected":false},"author":1,"featured_media":26566,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"off","neve_meta_content_width":70,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[3708,3709],"tags":[],"class_list":["post-28864","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-publication","category-recent-news"],"yoast_head":"\nPalm Players Pin High Hope On Govt To Settle Lasting Problems - 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They use it as the main raw material to produce a variety of consumer goods they\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/07\/eu_indonesias_palmoil_.jpg?fit=757%2C498&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/07\/eu_indonesias_palmoil_.jpg?fit=757%2C498&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/07\/eu_indonesias_palmoil_.jpg?fit=757%2C498&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/07\/eu_indonesias_palmoil_.jpg?fit=757%2C498&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":28733,"url":"https:\/\/gapki.id\/en\/news\/2024\/10\/13\/palm-industry-players-break-silence-on-tax-evasion-of-rp300t\/","url_meta":{"origin":28864,"position":1},"title":"Palm Industry Players Break Silence On Tax Evasion Of Rp300t","author":"admin","date":"October 13, 2024","format":false,"excerpt":"JAKARTA \u2013 Palm oil industry players broke silence about the Indonesian government\u2019s allegation of tax evasion at around Rp 300 trillion in the top industry of the country. The Indonesian Palm Oil Association\u2019s (GAPKI) Chairman Eddy Martono said that the accusation stems from the government\u2019s decision to conduct legal whitewashing\u2026","rel":"","context":"In "Info & Activity"","block_context":{"text":"Info & Activity","link":"https:\/\/gapki.id\/en\/news\/category\/info-activity\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/09\/eddy_martono_promediateknologi.id_.jpg?fit=740%2C503&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/09\/eddy_martono_promediateknologi.id_.jpg?fit=740%2C503&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/09\/eddy_martono_promediateknologi.id_.jpg?fit=740%2C503&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/09\/eddy_martono_promediateknologi.id_.jpg?fit=740%2C503&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":31421,"url":"https:\/\/gapki.id\/en\/news\/2026\/05\/20\/ri-to-centralize-exports-of-key-commodities-including-palm-oil\/","url_meta":{"origin":28864,"position":2},"title":"RI To Centralize Exports Of Key Commodities, Including Palm Oil","author":"admin","date":"May 20, 2026","format":false,"excerpt":"JAKARTA \u2013 Indonesian President Prabowo Subianto said on Wednesday that his government will centralize exports of key commodities, including palm oil and coal, as part of efforts to boost state revenues and \u200btighten the country's grip over its abundant natural resources. Prabowo said in a fiery \u200cspeech to parliament that\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/10\/palmoil_plantation_garden_gapki_indonesia_india.jpg?fit=1172%2C593&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/10\/palmoil_plantation_garden_gapki_indonesia_india.jpg?fit=1172%2C593&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/10\/palmoil_plantation_garden_gapki_indonesia_india.jpg?fit=1172%2C593&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/10\/palmoil_plantation_garden_gapki_indonesia_india.jpg?fit=1172%2C593&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/10\/palmoil_plantation_garden_gapki_indonesia_india.jpg?fit=1172%2C593&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":29249,"url":"https:\/\/gapki.id\/en\/news\/2025\/01\/23\/gapki-hopes-palm-industries-more-conducive-for-better-governance\/","url_meta":{"origin":28864,"position":3},"title":"Gapki Hopes Palm Industries More Conducive For Better Governance","author":"admin","date":"January 23, 2025","format":false,"excerpt":"JAKARTA \u2013 The Indonesian Palm Oil Association (GAPKI) hopes that the palm oil industries will be more conducive for the implementation of good governance to increase the industrial growth and improve their sustainability in the future. \"Looking forward, we hope that the palm oil industries will be more conducive for\u2026","rel":"","context":"In "Myths & Facts"","block_context":{"text":"Myths & Facts","link":"https:\/\/gapki.id\/en\/news\/category\/myths-facts\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/08\/kelapa_sawit_misekta.id_.webp?fit=698%2C426&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/08\/kelapa_sawit_misekta.id_.webp?fit=698%2C426&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/08\/kelapa_sawit_misekta.id_.webp?fit=698%2C426&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":29139,"url":"https:\/\/gapki.id\/en\/news\/2024\/12\/31\/president-prabowo-ri-needs-to-expand-palm-plantations\/","url_meta":{"origin":28864,"position":4},"title":"President Prabowo: RI Needs To Expand Palm Plantations","author":"admin","date":"December 31, 2024","format":false,"excerpt":"JAKARTA \u2013 President Prabowo Subianto has opened the opportunity for Indonesian oil palm growers to expand their plantation areas to meet the global growing need of vegetable oils, which are widely used as feedstocks to produce foods and energy products. \u201cI think in the future we have to increase our\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/01\/palmoil_plantations_RI_.webp?fit=1200%2C686&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/01\/palmoil_plantations_RI_.webp?fit=1200%2C686&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/01\/palmoil_plantations_RI_.webp?fit=1200%2C686&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/01\/palmoil_plantations_RI_.webp?fit=1200%2C686&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/01\/palmoil_plantations_RI_.webp?fit=1200%2C686&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":29921,"url":"https:\/\/gapki.id\/en\/news\/2025\/06\/29\/gapki-apn-agree-to-synergize-to-increase-palm-productivity\/","url_meta":{"origin":28864,"position":5},"title":"GAPKI, APN Agree To Synergize To Increase Palm Productivity","author":"admin","date":"June 29, 2025","format":false,"excerpt":"JAKARTA \u2014 With a spirit of collaboration, the executive board of the Indonesian Palm Oil Association (GAPKI) led by Eddy Martono made a visit to the headquarter of PT Agrinas Palma Nusantara (APN) recently in Jakarta. The GAPKI entourage also includes GAPKI deputy chairmen, GAPKI\u2019s\u00a0 expert council members, and GAPKI\u2019s\u2026","rel":"","context":"In "Info & Activity"","block_context":{"text":"Info & Activity","link":"https:\/\/gapki.id\/en\/news\/category\/info-activity\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/07\/gapki_agrinas_palma_.webp?fit=1156%2C690&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/07\/gapki_agrinas_palma_.webp?fit=1156%2C690&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/07\/gapki_agrinas_palma_.webp?fit=1156%2C690&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/07\/gapki_agrinas_palma_.webp?fit=1156%2C690&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/07\/gapki_agrinas_palma_.webp?fit=1156%2C690&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/10\/oilpalm_goodto.com_.png?fit=617%2C347&ssl=1","_links":{"self":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/28864","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/comments?post=28864"}],"version-history":[{"count":1,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/28864\/revisions"}],"predecessor-version":[{"id":28865,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/28864\/revisions\/28865"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media\/26566"}],"wp:attachment":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media?parent=28864"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/categories?post=28864"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/tags?post=28864"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}