Become The Largest Export Results, The Government Continues To Manage The Palm Oil Industry

Coordinating Minister for Maritime Affairs and Investment Luhut Bisar Pandjaitan (Photo: Mery Handayani/VOI)

JAKARTA - The palm oil industry in Indonesia is one of the strategic industries.

At least more than 16.4 million people live and work in the palm oil industry.

In fact, the palm oil industry is the largest export producer.

Coordinating Minister for Maritime Affairs and Investment, Luhut Bisar Pandjaitan said, as part of improving the governance of the palm oil industry, President Joko Widodo (Jokowi) ordered to audit current governance.

"The government also continues to take various steps to be able to achieve the target from the upstream (plant) to downstream (industry for processing palm oil, oleochemical, to biodiesel)," said Luhut, at a plenary event for district oil palm plantation data in the context of the All-Indonesian Palm Oil Plantation Audit on Thursday, in Jakarta, Thursday, July 7.

Luhut said, this will help complete data and information, so that policy making becomes more accurate.

Furthermore, Luhut said, the role of palm oil is very large, both from the upstream and downstream sides.

In addition to one of the biggest contributors to exports and state revenues, the affordable price of fresh fruit bunches (FFB) and cooking oil help maintain consumption levels.

"The problem with the price of TBS cannot be communicated now, because we also have to see developments," he said.

However, said Luhut, problems still occur on the upstream side, export realization still takes time to return to normal after the export ban.

Therefore, in early July the government had accelerated export realization to reach 267,000 tons a day.

The acceleration of exports is carried out by increasing the ratio of 1:7 collectors for SIMIRAH 2.0.

The realization of the SIMIRAH 2.0 DMO (delivery from producer to distributor 1) has reached 281,000 tons.

With a 1:7 allocation ratio and the remaining 1st allocation of the transition and acceleration program, there is an export allocation of up to 4 million tons for July.

"This step in accelerating export realization will be able to encourage the emptying of tanks and help increase the price of TBS at the farmer level," he explained.

Although the world is facing the challenges of energy and food crises, said Luhut, Indonesia's economic recovery is still running strong and fast.

In fact, Indonesia's economic growth in the first quarter of 2022 is better than many countries in the world.

In addition, Indonesia's export growth became one of the highest in the world in May 2022.

"Our exports are still one of the strongest in the world. We all have to be careful seeing the movement of this world. We are lucky that until today the food problem is still very okay," he said.