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Deputies Deputy III Economics News

Farmers Talks to Moeldoko, Decry Palm Oil Export Ban

Jakarta – Meeting the Presidential Chief of Staff, the Indonesian Palm Oil Farmers Association (Apkasindo) conveyed their discontentment against palm oil export ban issued by the government late last month. The ban, according to the association, has led the fresh fruit bunch (TBS) prices to plummet, which further slashed the palm oil farmers’ income.

The Chairman of Apkasindo, Gulat Manurung, blamed the complicated bureaucracy and ineffective government’s policies. He specifically referred to the 2018 Agriculture Ministerial Decree on the purchase price of the palm oil fresh fruit bunches (Tandan Buah Segar/TBS). The regulated price is unfairly aimed only for farmers partnered with a palm oil company.

“In fact, there are only around 7 percent of farmers who are in partnership with palm oil companies. While the other 93 percent are independent palm oil farmers,” said Gulat. “The association demands the decree to be revised,” he added.

In addition, the association also cited the community-owned palm oil rejuvenation program (PSR) funded by the special public service agency, the Indonesian Oil Palm Estate Fund (BPDP-KS), as another disappointment. 

“Farmers have yet to be able to apply for the rejuvenation program. Not to mention, the app [software] of the program has been inaccessible in any devices in the past five months,” he added.

Meanwhile, Apkasindo directly met with the Chief of Staff at the Bina Graha Building in Jakarta after they staged a sizable street protest over the palm oil export ban in the capital city.

Carefully listening to the aspirations delivered by the farmers’ association himself, Moeldoko promised to forward the message to the President Joko Widodo. He also stressed that the farmers’ concern over the ban was an issue the government would pay attention to.

In the defense towards the policy, Moeldoko said that the government’s purpose behind the ban was to control the soaring price of cooking oil, in a bid to fulfill the local markets’ needs.

“It does not necessarily mean the President turns a blind eye to the palm oil farmers situation. The President is putting the farmers’ welfare as top consideration while guaranteeing affordable cooking oil supply for the public need. It is undeniable that the latter has created a broad impact in society’s daily life, too,“ Moeldoko said.

The Executive Office of the President, he said, would soon discuss the matter with the Agriculture Ministry and the BPDP-KS with the hope of finding a solution over the ineffective Ministerial decree and the rejuvenation program.

Moeldoko went on to say his appreciation to Apkasindo for administering the street protest in an orderly manner. “The government is all ears to the aspirations of the people. So, thank you Apkasindo for staging the protest peacefully,” he praised the farmers.