Solo, The Indonesia Post – Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan ensured that the government would continue to improve the governance of the palm oil industry, including by conducting audits.
“As part of improving the governance of the palm oil industry, the President ordered an audit of the current governance to be carried out. The government also continues to take various steps to achieve targets from upstream to downstream,” said Luhut at the Sub-Province of Oil Palm Plantation Data. the framework of the Audit of Indonesian Palm Oil Plantations in Jakarta, Thursday.
In a written statement received in Solo, Central Java, Thursday, Luhut mentioned the palm oil industry in Indonesia as one of the strategic industries because more than 16.4 million people live and work in the industry. In addition, this industry is also the largest export producer.
Therefore, Luhut conveyed that the government continues to take various steps to be able to achieve targets from the upstream side, namely plantations to downstream in the form of palm oil, oleochemical, and biodiesel processing industries.
This will help complement data and information, so that policy making is more accurate.
Despite being faced with a world economic pressure situation, the role of palm oil is very large, both from the upstream and downstream sides.
Palm oil plays a major role in the Indonesian economy. In addition to being one of the largest contributors to exports and state revenues, affordable prices for fresh fruit bunches (FFB) and cooking oil help maintain consumption levels.
“The issue of the price of FFB cannot be communicated now, because we also have to see developments,” he added.
Luhut also admitted that problems still occur on the upstream side because the realization of exports still takes time to return to normal after the export ban. However, in early July there has been an acceleration of export realization reaching 267 thousand tons in a day.
Export acceleration is carried out by increasing the multiplier ratio of 1:7 for SIMIRAH 2.0. Meanwhile, the realization of SIMIRAH 2.0 DMO (delivery from producer to distributor 1) has reached 281 thousand tons.
With a multiplier ratio of 1:7 and the remaining allocation from the transition and acceleration program, there is an export allocation of up to 4 million tons for July.
This step to accelerate the realization of exports will be able to encourage tank emptying and help increase FFB prices at the farm level.
Even though the world is facing the challenge of an energy and food crisis, Indonesia’s economic recovery is still going strong and fast.
Luhut also assessed that Indonesia’s economic growth is still 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 about the movement of this world. We are lucky that until today the food problem is still very good,” concluded Luhut. (ojn/bbs)
Comment