Suswono told the lawmakers in a hearing on Monday, the government is encouraging development of downstream sector of palm oil industry such as bio-fuel industry.
"The government will gain from the expansion of downstream palm oil industry . Incentives would not cause a loss," he said.
Incentive will boost development of palm-oil based downstream industry such as bio-fuel industry to reduce dependence on fossil fuel, he said.
He said bio-fuel is also high in demand in international market and development of the industry would open new jobs and increase the value of palm oil.
Suswono said the agriculture ministry will encourage development of integration of cow breeding farm and oil palm plantations in a bid to increase the country`s cow population.
He called on plantation companies to initiate integration of the two business areas , saying the ministry will issue a regulation on the integration scheme .
The ministerial regulation no.97 of 2013 will regulate license for the imports of breeder cows, he said.
Oil palm plantations will serve as a source of feed for the cows, he added.
Separately , deputy finance minister Bambang Brojonegoro said incentive has been offered for bio=fuel development before the 10 percent mandatory bio-fuel.
Bambang said the incentive is to help bio-fuel business with Rp3,500 per liter.
(H-ASG/A014)
Editor: Jafar M Sidik
Copyright © ANTARA 2013
