The Indonesian Palm Oil Farmers ASSOCIATION (Apkasindo) requested that oil palm management not be merged into the Plantation Fund Management Agency (BPDP) but remain under the Palm Oil Plantation Fund Management Agency (BPDP-KS).
General Chairman of Apkasindo Gulat ME Manurung stated that his party appreciates the policy of increasing cocoa and coconut production with the establishment of the Plantation Fund Management Agency (BPDP) through Presidential Decree No. 132/2024.
“We ask that palm oil not be combined in this new institution. Therefore, BPDP-KS should continue to exist to fund the palm oil program including farmers independently for the national interest as an Indonesian commodity,” he said in a statement in Jakarta, Sunday (27/10).
According to him, the concept of combining oil palm with other plantation crops was very hasty, without in-depth study, without involvement stakeholder palm oil in its planning, especially with blending The palm oil fund becomes a joint fund with other plantation crops.
It would be better, he continued, for the new institution to focus specifically on cocoa and coconut.
“For this reason, we oil palm farmers ask President Prabowo Subianto to revoke Presidential Decree No. 132/2024, then re-impose the Presidential Decree which oversees BPDP-KS,” he said.
According to Gulat, the issuance of Presidential Decree No. 132/2024 which eliminates the role of BPDP-KS has caused anxiety for oil palm farmers who are applying for funding for People’s Palm Oil Rejuvenation (PSR). Moreover, the funds collected by BPDP-KS come from export levies (levy) palm. This means that farmers contribute to the mutual cooperation fund.
From Apkasindo’s calculations, the CPO export levy tariff of US$62 per ton in September 2024, has burdened palm oil farmers at Rp. 192/kg assuming a FFB yield of 20% and as of October this has increased again, while the price of FFB for palm oil farmers is Rp. 208/kg FFB.
“We palm oil farmers do not mean to be selfish or inclusive of palm oil, but the fact is that we are still stumbling, we need affirmative attention through our own palm oil funds,” he said.
He said, the aim of the palm oil fund was to maintain FFB prices through domestic CPO absorption for the biodiesel program, increasing productivity through People’s Palm Oil Rejuvenation (PSR), infrastructure, farmer human resources, and sustainability of people’s oil palm plantations which was in line with the strategic program of the Prabowo-Gibran government.
Gulat added that Apkasindo, in the process of discussing the public review of Presidential Decree No. 132/2024, firmly rejected palm oil being under the Plantation Fund Management Agency (BPDP), especially by combining palm oil funds with cocoa and coconut with various arguments.
BPDP-KS, he continued, should not be sacrificed because of the low absorption of palm oil funds by palm oil farmers, because the obstacles lie in other ministries/institutions which interfere quite a lot in palm oil affairs with their respective regulations.
“So this is what should be addressed, not dissolving BPDP-KS into BPDP,” he said.
Gulat said that palm oil farmers want to increase the strategic role of BPDP-KS to become the Indonesian Palm Oil Agency whose position is directly under the President so that there is no longer any confusion between K/L regulations regarding palm oil. (Ant/E-2)
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Interview with Gulat ME Manurung, General Chairman of Apkasindo
Editor: Thank you for joining us today, Gulat! Let’s dive right into the topic at hand—Presidential Decree No. 132/2024. You’ve expressed concerns about merging palm oil management into the Plantation Fund Management Agency (BPDP). Can you elaborate on why this change worries you and your fellow farmers?
Gulat Manurung: Thank you for having me. The main concern is that merging palm oil management with the BPDP under the new decree could dilute the focus and funding specifically allocated for palm oil. Palm oil has unique challenges and needs that differ from other commodities like cocoa and coconut. Our current agency, BPDP-KS, has a structure and history tailored to support palm oil farmers, and we believe it’s crucial to maintain that dedicated framework.
Editor: You mentioned that the merger seems hasty and lacks a thorough study involving key stakeholders. Can you elaborate on what this means for the palm oil sector?
Gulat Manurung: Yes, it appears this decision was made without adequate consultation with us, the farmers, who are directly impacted by these policies. Combining funds and management under a single umbrella doesn’t just risk potential misallocation but also fundamentally changes how specific support can be given. Each crop entails its own economic variables and strategic needs—lumping them together can lead to inefficiencies and oversight.
Editor: You’ve called for President Prabowo Subianto to revoke the decree. What approach do you envision moving forward if the decree were to be reconsidered?
Gulat Manurung: Ideally, we would like to see a separate, focused institution for palm oil that continues the successful programs we have in place, particularly the People’s Palm Oil Rejuvenation (PSR) initiative. We need a structure that is responsive to our challenges and supports our sustainability goals as an essential Indonesian commodity.
Editor: The financial aspect of this issue seems significant, especially regarding export levies and the burden on farmers. Can you summarize the current financial strain this decree has caused?
Gulat Manurung: Certainly. With the recent increase in the CPO export levy, farmers are now seeing significant financial pressure. For example, the levy of US$62 per ton translates to around Rp. 192/kg for us, but the selling price for our fresh fruit bunches (FFB) is quite low at Rp. 208/kg. This is a concerning margin that threatens our livelihoods and undermines our capacity to invest in our farms and technology.
Editor: Thank you, Gulat, for sharing your insights and concerns about the potential impact of Presidential Decree No. 132/2024 on palm oil farmers. We hope your voices are heard as this situation evolves.
Gulat Manurung: Thank you for the opportunity to discuss these important issues affecting our community. It’s crucial we advocate for a sustainable future for palm oil farming in Indonesia.
Management that allows us to continue leveraging the funding from the Palm Oil Plantation Fund Management Agency (BPDP-KS). This agency has been instrumental in supporting our initiatives, such as the People’s Palm Oil Rejuvenation program. We believe that a dedicated focus on palm oil will enable us to enhance productivity, stabilize prices, and tackle the unique challenges we face as farmers. We also hope for more engagement from the government in involving palm oil stakeholders in future policies, ensuring that our voices are heard and considered.
Editor: You mentioned concerns about funding and its impact on farmers. Can you elaborate on how the decree might affect the economic situation of palm oil farmers?
Gulat Manurung: Certainly. The funds we access through BPDP-KS come from export levies, which means we, as farmers, are essentially contributing to these resources. With the integration of palm oil funding into a broader agency, there’s a risk that the specific financial support needed for palm oil will be overshadowed by other crops’ needs. With current price pressures and rising costs, it is essential that palm oil farmers continue to receive affirmative support to sustain our livelihoods. Without targeted funding, our production could suffer, leading to adverse effects not just on the economy of palm oil farming, but also on the larger agricultural sector.
Editor: Thank you for sharing your insights, Gulat. This is an important topic for many in the palm oil sector. We appreciate your time and efforts in advocating for the interests of palm oil farmers.
Gulat Manurung: Thank you for having me. I hope we can collectively work towards a solution that best supports all farmers in Indonesia.
