KPPU Proposes Restriction Of Cultivation Rights For Palm Oil Companies

Illustration. (Photo: Doc. Antara)

JAKARTA - The Business Competition Supervisory Commission (KPPU) believes that the government needs to limit the use of rights (HGU) for palm oil companies. This follows the government's plan to conduct a thorough audit of palm oil companies to address the price and availability of domestic cooking oil supplies.

The Head of KPPU, Ukay Karyadi, explained that the HGU can be limited based on the type of business group. This means that it does not refer to the number of companies.

"We suggest there is a limitation on HGU per business group, not per company but business group," he said in a virtual press conference, Tuesday, May 31.

Furthermore, Ukay said the limitation of HGU based on the type of business group needs to be done considering the large number of oil palm plantations.

"We noted that even though there were 70 cooking oil companies, there were not many when we narrowed them down. The KPPU in its investigation focused on 8 business groups that on average had oil palm plantations," he said.

Ukay revealed that based on the data he had, although there were many listed companies, only a few controlled crude palm oil (CPO).

"Although there are a lot of cooking oil companies, if they are narrowed down a little. We welcome it if the government regulates it upstream. Because the problem is in the upstream," he explained.

On the same occasion, Ukay also said that KPPU is ready to assist the government if needed in conducting audits of oil palm companies.

"We are ready, if the government involves KPPU in the audit process of palm oil companies. Currently we are conducting a study, when this study is completed, we will give it to the government as a recommendation for consideration," he said.

Previously reported, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said he would conduct an audit of palm oil companies. He said an audit was needed to identify and identify existing palm oil businesses. Covers the area of the garden, production to the head office.

This plan is in line with Luhut's new task given by President Joko Widodo (Jokowi) which is to solve the cooking oil problem in Java and Bali.

"As soon as the President asked me to manage cooking oil, people thought it was only cooking oil. No, I went straight to the top," said Luhut.