The Palm Scribe

Smallholders demand benefits from government’s B20 policy

The Jakarta Post, 7 December 2018

Oil Palm Farmers Union (SPKS) Chair Mansuetus Darto said smallholders, who are responsible for 43% of Indonesia’s oil palm plantations at 14.3 million hectares, received unfair treatment despite the industry gaining the government’s support through the 20% biodiesel blend (B20) policy. The upstream sector also needs the subsidy, he said, referring to the incentive scheme for biodiesel taken from the palm oil export levy collected by the Indonesian Oil Palm Estate Fund (BPDPKS).

Mansuetus urged the government to reevaluate the crude palm oil (CPO) export levy collected by the BPDPKS, which he proposed to be lowered to $15 per metric ton, or 70% lower than the previous rate at $50 per metric ton of CPO. In addition, he also hoped the government could help smallholders sell palm fruit directly to the industry, as opposed to using middlemen.

Share This