Not All Farmers Enjoy PE Liberation, The Government Asks To Implement The Basic Price Of Palm Commodity

JAKARTA - The government has given an extension of the release of export levies (PE) for palm oil until October 2022.

However, the provision of these incentives is considered not to be able to be enjoyed by all farmers.

Therefore, the government is asked to apply basic prices in palm oil commodities.

Sawit Watch Executive Director Achmad Surambo said not all farmers benefit from this 0 percent PE.

Achmad admits that there is a relationship with tariffs, but not 100 percent.

"But not 100 percent, because the price of palm oil is set," said Achmad, Monday, August 29.

In oil palm agriculture, said Achmad, the price of fresh fruit bunches (FFB) is determined by the local government (Pemda).

In a model like this, according to Achmad, self-help farmers are the most vulnerable, and will find it difficult to get a decent TBS price.

As a solution for oil palm farmers to be more prosperous, Achmad suggested that a basic price be applied in addition to the pricing price.

"For example, Padi, there is a basic price drawn up from the production component. You can use basic prices to assist the pricing price," he said.

According to Achmad, with the basic price, it means that there are appropriate benchmarks for farmers.

In fact, at this time, said Achmad, the price of FFB determination in each region is different.

Speaking of the central and regional governments, Achman highlighted the lack of synergy and implementation of Presidential Instruction Number 6 of 2019 concerning the National Plan for Sustainable Palm Oil Plantation in 2019-2024.

In his records, of the 25 provinces that have oil palm cover, only 9 provinces have lowered to Regional Regulation.

"The national action is more integrated, unfortunately in the regions, only a few provinces follow the five components in the Presidential Instruction," said Achmad.

So far, the synergy between the central and regional governments is still considered low, so that national palm oil programs have not been implemented in the regions, have not been socialized and beneficial for farmers.

People's Palm Oil Rejuvenation

Meanwhile, Director of CORE Indonesia Research Piter Abdullah Redjalam said that of the five government commissions to support the oil palm plantation sector as one of the national strategic commodities, what must be emphasized is the acceleration of the People's Palm Oil Rejuvenation Program (PSR).

Piter said, the program will support the improvement of the welfare of oil palm farmers as well as contribute to the national economy.

"I think the most important commitment to be escorted to support the welfare of oil palm farmers is the People's Palm Oil Rejuvenation Program," explained Piter.

So far, said Piter, the program has not been optimal and has not been realized by the government.

"So far, this rejuvenation has not been carried out at least. The BPDPKS has not yet realized it," he said.

Piter hopes that the PSR program will be realized in line with the government's statement of commitment to support the oil palm plantation sector.

"Hopefully the commitment this time will really be realized," he said.

Piter emphasized the importance of realizing other policies to support the national economy.

Such as zero rupiah export fees, the allocation of biodiesel, also affects the national economy.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto supported the oil palm plantation sector as one of the national strategic commodities.

The government sees a sustainable palm oil industry and also the welfare of its farmers.

"The PE Tariff extension of 0 US dollars is intended to maintain current momentum, where crude palm oil (CPO) prices are starting to stabilize, cooking oil prices are starting to fall, and the price of fresh fruit bunches (FFB) is starting to increase, making farmers or planters begin to feel the benefits," said Airlangga.

In a meeting of the Steering Committee (Komrah) of BPDPKS on Sunday, August 28, a decision was obtained which had approved five things, namely the Extension of Export Feature Tariffs (PE) of US$0 for all products until October 31, 2022, the Acceleration of the 2022 Biodiesel Allocation, the Development of the Red Cooking Oil Factory (3M), Support for the Acceleration of Increased Indonesian Sustainable Palm Oil (ISPO) Certification, and the Acceleration of the People's Palm Oil Rejuvenation Program (PSR).