The government certainly does not turn a blind eye. Hence, indeed, these are things that we must take policy on, for which we must then also take corrective steps
Jakarta (ANTARA) - The Indonesian Government continued to take corrective steps to improve the palm oil farmers' welfare, including by lifting the export ban on all types of palm oil products or cooking oil, Vice President Ma'ruf Amin stated.

Amin conveyed the statement while receiving members of the Central Executive Board of the Indonesian Palm Oil Farmers Association (DPP Apkasindo) at the Vice President's official residence, here, Thursday , according to a statement on Friday.

"The government certainly does not turn a blind eye. Hence, indeed, these are things that we must take policy on, for which we must then also take corrective steps," he stated.

The vice president highlighted several other concrete efforts made by the government for increasing the price of palm fresh fruit bunches and lowering the price of cooking oil, including the policy issued by the Minister of Finance of the temporary abolition of crude palm oil (CPO) export levies and its derivative products.


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“Stipulate a new DMO (Domestic Market Obligation) policy. Companies are required to distribute cooking oil, only to get the calculation of export rights and accelerate export distribution for CPO commodities and their derivatives," Amin stated.

Meanwhile, on the downstream side, the vice president explained that discussions had been held at a limited meeting chaired by President Joko Widodo on July 17, 2022, regarding the discourse to establish a cooperative-based mini CPO factory.

Thus, in future, the price of palm fresh fruit bunches is expected to increase and farmers will not solely depend on large factories.

“We have discussed the downstreaming of palm oil with one of the articles on the proposal to establish a mini CPO factory and a cooperative-based red palm oil factory. The hope is that it will be a solution for farmers to increase the price and sales volume of palm fresh fruit bunches. This is still under discussion," the vice president stated.

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"Indeed, the president has asked for mini factories several times, so that the farmers do not depend entirely on big factories," he added.

The vice president also appealed to Apkasindo's ranks to continue to oversee the on-field implementation of policies and contribute to efforts to improve the quality of human resources for palm oil farmers.

"I hope these smallholder palm oil farmers would be able to grow well," the vice president noted.

Meanwhile, General Chairperson of Apkasindo Gulat M. E. Manurung reported that the policy of revocation of export levies issued by the government had a positive impact and was felt directly by farmers.


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Translator: Rangga P, Azis Kurmala
Editor: Fardah Assegaf
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