Observers: CPO And Mandatory Export Restrictions B35 Program Encourages The Awakening Of The Palm Industry

Illustration. (Photo: Doc. Antara)

Tanjungpura University Economic Observer Pontianak, Prof. Dr. Eddy Suratman assessed that the policy of limiting crude palm oil (CPO) exports and mandatory 35 percent biodiesel mixture programs (B35) benefits palm oil farmers in West Kalimantan.

"The existing policies have been taken into account by the government. The CPO restriction is very good which is also in line with B35, which requires large amounts of crude palm oil. Existing policies can stabilize prices and farmers will certainly benefit," he said, quoted by Antara, Tuesday, January 10.

He said the existing policy was also strongly supported by the Palm Oil Entrepreneurs Association (Gapki) and farmers so that it would be more convincing in the future that the palm oil industry would revive.

"The price of palm oil will rise again. Moreover, it is associated with palm oil production in Indonesia, including in Malaysia. Neighboring countries production is down, we can take the market," he explained.

Regarding West Kalimantan, palm oil has become a brand for this area because it has become the economic life of West Kalimantan. The presence of oil palm plantations is currently not only being pursued by companies but self-help farmers. So that the progress and withdrawal of the economy cannot be separated from the role of palm oil.

"For this reason, oil palm-related policies must be observed so as not to disturb our economy. If there are developments in world demand, it decreases and encourages price demand, it must be properly considered. The provincial government must be very careful about the economy and policies to maintain palm oil stabilization. This is because price stability can maintain the West Kalimantan economy," he explained.

He added that palm oil will become a commodity for profit sharing and West Kalimantan will benefit greatly as a producing region. However, it must continue to be observed from the Government Regulation (PP) on the distribution of good results, whether it is based on the area of gardens, production or a wide combination and production. Then pay close attention to how the finances are to enter provinces and districts.

"If the PP is realized in 2023, there will be additional regional income in West Kalimantan. We hope that the provincial and district governments can take advantage of this for the progress of farmers and regions," he explained.