Palm Oil Law Regulations Recommended For Simplification

JAKARTA - Head of the Center for Palm Oil Studies at the Bogor Agricultural Institute (IPB) Prof. Budi Mulyanto recommended simplification of oil palm legislation or a kind of palm oil omnibus that regulates from upstream to downstream.

Budi conveyed that the regulation is expected to fix governance so that the use and utilization of oil palm potential is maximized.

"Given that oil palm is special for the Indonesian people, there are many benefits and many businesses, then one body is to manage oil palm A-Z affairs, so that people get one-door services," Budi said quoting Antara.

According to Budi, this agency must also manage one periodically updated palm data for the improvement and development of the palm oil industry (continuous improvement).

"Hopefully it will be started by the Government of President Prabowo, the palm oil industry will develop more steadily and orderly, so that the value of business (EODB) in Indonesia will increase, and investors will believe in investing in the palm oil sector," he said.

Budi also appreciated the results of a systemic study by the Indonesian Ombudsman regarding the potential for maladministration in the management of the palm oil industry in Indonesia.

The results of these findings are expected to be followed up with an affirmative policy for the settling down of palm oil problems.

It is known, based on the findings of the Indonesian Ombudsman, the unclear status of oil palm plantation land due to overlap with forest areas has disrupted the sustainability of oil palm plantations.

It was found that the overlay slice area overlapping oil palm plantations with forest areas was 3,222,350 hectares, with legal subjects amounting to 3,235.

Conflict in land ownership status between oil palm plantations and forest areas results in legal uncertainty for farmers and companies.

The Indonesian Ombudsman found potential maladministration in the form of unclear procedures and legal certainty in the competition for Palm Oil Factory (PKS) businesses with gardens and PKS without gardens, biodesel policies and export tariff arrangements for the Oil Mill Effluent (POME).

The management of the palm oil industry which is not good enough has the potential to cause economic losses in total oil palm around Rp279.1 trillion per year.

The Ombudsman proposes that there is an institution that specifically takes care of policies related to oil palm affairs. The institution is given the authority in such a way that it can integrate policies related to oil palm affairs as well as supervise the implementation of regulations related to palm oil affairs.