"There is one solution to improve governance: setting up a National Palm Oil Agency tasked with offering one-stop services to handle palm oil-related matters from the upstream to downstream sectors," Ombudsman member Yeka Hendra Fatika noted in a statement cited here on Monday.
Fatika made this proposal in a discussion in Jakarta on Wednesday (May 7), during which he offered the government several viable measures to overhaul palm oil governance in the country.
In addition to proposing the agency's formation, Fatika suggested that the government intensify efforts to address issues stemming from the overlapping of palm oil plantations and forest areas, improve the permit issuance system, update data on planters, and strengthen regulations governing palm oil factories.
Furthermore, he highlighted the importance of ensuring favorable prices for fresh palm fruit bunches for farmers.
Fatika explained that these suggestions stemmed from a six-month study conducted by the Ombudsman last year, which involved 52 institutions across Indonesia.
The official also highlighted that last month, his team sent an official letter to President Prabowo Subianto, briefing him on pressing matters related to Indonesia's palm oil industry.
He noted that although the country has proven its strength in downstreaming palm oil, the industry's upstream sector still requires significant improvements.
On the same occasion, National Development Planning Minister Rachmat Pambudy affirmed that palm oil plays a crucial, far-reaching role in life on Earth.
"Beyond its importance for our farmers, business actors, and the state, palm oil has become a global commodity, to which foods around the world are tied," he remarked.
Meanwhile, former agriculture minister Bungaran Saragih highlighted that palm oil had emerged as the most prominent industry in Indonesia's agricultural sector.
"Palm oil stands out among other commodities in our agricultural sector," he remarked.
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Translator: Agatha O, Tegar Nurfitra
Editor: Primayanti
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