Gapki Ready To Give An Explanation On Palm Oil Industry Issues

Illustration (Photo: Doc Antara)

JAKARTA - The Indonesian Palm Oil Entrepreneurs Association (Gapki) is ready to provide an explanation to the new government regarding the issue of the palm oil industry until the issue of accusations of palm oil entrepreneurs who have not paid taxes.

Gapki chairman Eddy Martono said that his party hopes to immediately face President-elect Prabowo Subianto to explain the actual problem until the issue arises.

"It's not just this issue, we will also explain to the President (Presiden terpilih Prabowo Subianto) as a whole the challenges faced by the palm oil industry both at home and abroad," said Eddy Martono as quoted by ANTARA, Tuesday, October 15.

Eddy said that Gapki always listens to various inputs from the government, including allegations of naughty palm oil entrepreneurs who cost the state finances Rp300 trillion.

Therefore, Gapki hopes to immediately face President-elect Prabowo Subianto to explain various strategic potentials, challenges including allegations of financial leakage in the palm oil industry.

According to Eddy, the issue of this leak is actually a case of the implementation of oil palm plantations in forest areas. Then the Law Number 6 of 2023 concerning Job Creation was issued.

Based on this law, the government finally formed a Task Force Team to accelerate the handling of the management of the palm oil industry, especially those in forest areas.

In the Job Creation Law, Article 110A, it is stated that companies that are already operating in forest areas, but have business licenses, can continue to carry out activities as long as they complete all requirements within a maximum period of three years.

There is also article 110B containing the provisions that companies that are already operating in forest areas without business licenses can continue their activities as long as they pay administrative fines.

"Actually, the requirements categorized are included in Article 110 A and have received a bill from the Ministry of Environment and Forestry (KLHK). Almost 90 percent of companies have paid," said Eddy.

However, Eddy did not know whether the cooperative-shaped company had completed the provisions as stated in Article 110A.

Regarding the provisions in Article 110B, said Eddy, until now Gapki members have not received a notification letter and a bill from the Ministry of Environment and Forestry.

"Maybe this is what is considered disordered, when it's actually not like that because everything has been monitored by the Palm Oil Governance Task Force. Because if the company is deemed to have indications of overlapping with forest areas, they must report if they are not subject to sanctions," said Eddy.

He added that the area of oil palm land that is included in the category of Article 110A is around 700 thousand hectares. Meanwhile, the area of those categorized as Article 110B is not yet known, because there is no letter from the Ministry of Environment and Forestry.

Gapki also does not know the estimate, because there is no bill related to the provisions of Article 110B.

"The determination from the Ministry of Environment and Forestry regarding oil palm land which is categorized as 110B and the administrative fine bill will clarify everything," explained Eddy.

The issue of palm oil entrepreneurs crossing taxes blew after Deputy Chairman of the Gerindra Board of Trustees Hashim S. Djojohadikusumo who is also the younger brother of the elected President of the Republic of Indonesia Prabowo Subianto said there was an alleged leak of state revenues reaching Rp300 trillion.

The leak was caused by oil palm entrepreneurs opening oil palm plantations and not paying taxes.

This was conveyed by Hashim at the Economic Discussion of the Chamber of Commerce and Industry with Senior International Entrepreneurs at the Kadin Tower, Monday (7/10).

According to Hashim, the new government led by Prabowo Subianto will try to maximize state revenue from the tax sector. One of the potential taxes that the government will pursue is taxes from these palm oil entrepreneurs.

Meanwhile, Executive Director of the Institute for Development of Economics and Finance (Indef) Tauhid Ahmad, the amount of tax that is allegedly unpaid by palm oil entrepreneurs up to Rp300 trillion needs to be verified.

According to him, the data must be re-verified both to the Directorate General of Taxes, BPKP, the Palm Oil Industry Governance Task Force, the Ministry of Environment and Forestry as well as business actors.

Verification is carried out, especially regarding where the source of the leak came from, whether it did not pay taxes or inaccurate reports. If there is a violation of regulations, it can be stated which rules are violated and so on.

The Rp300 trillion is huge. Even the results of the tax amnesty of all companies in Indonesia, are much smaller than that," said Tauhid.

He hopes that the information must be verified accurately because it involves the status of oil palm land.

"This is not only related to large companies, there is oil palm land which is also owned by farmers. It is the oil palm land that does not pay taxes, it must be ensured," he explained.