The meeting of the Steering Committee for the Palm Oil Plantation Fund Management Agency (BPDPKS) on January 22, 2021, has approved the proposed BPDPKS budget allocation for 2021. The allocated fund is Rp 5.5 trillion. "The main support is the fulfillment of the target for rejuvenating people's palm oil in 2021, covering an area of 180,000 hectares with a budget allocation of Rp. 5.567 trillion," said Coordinating Minister for the Economy Airlangga Hartarto, as quoted in a written statement on Saturday (22/1/2022).
To achieve this target, BPDPKS together with all stakeholders in the palm oil industry will develop a more effective and efficient mechanism for smallholder oil palm rejuvenation. In addition, the government also remains committed to supporting the biodiesel (B30) program in 2021 with a distribution allocation target of 9.2 million KL. The government's commitment is aimed at maintaining the stabilization of CPO prices and maintaining a non-oil and gas trade balance surplus of around 12 percent of which comes from exports of palm products and their derivatives. This is expected to make the target of 23 percent of the energy mix coming from Renewable Energy (EBT) by 2025, as stipulated in the National Energy Policy (KEN).
The Steering Committee meeting was chaired by the Coordinating Minister for Economic Affairs as Chair of the BPDPKS Steering Committee, and was attended by the Minister of Energy and Mineral Resources, the Minister of Trade, and the Minister of Agrarian Affairs and Spatial Planning. In addition, there were also the Minister of Finance represented by the Director General of Customs and Excise, the Minister of Industry represented by the Director General of Agro Industry, the Minister of PPN / Head of Bappenas represented by the Deputy for Maritime Affairs and Natural Resources, and the Minister of Agriculture represented by the Director General of Plantations. Also present were Chairman of the Supervisory Board of BPDPKS Evita Legowo, President Director of BPDPKS Eddy Abdurrachman, Main Resource Person for the Steering Committee Rino Afrino, Deputy for Food and Agribusiness Coordination as Chair of the Secretariat of the BPDPKS Steering Committee Musdhalifah Machmud, and the Assistance Team for the Coordinating Minister for the Economy Tirta Hidayat.
The Deputy Minister of Trade, Jerry Sambuaga, urged all parties to be aware of the campaign against the entry of oil palm in Switzerland. The reason is, this could set a precedent for similar campaigns in other countries, particularly in the European Union. This statement was given by the Vice Minister of Trade in response to the Uniterre movement, an NGO in Switzerland that started an official campaign for an anti-palm oil referendum. As is well known, Switzerland adheres to a direct democracy where decision-making at the state level is often carried out through referendums. The issue of palm oil was raised by NGOs in Switzerland and successfully put on the agenda in the upcoming referendum. The issue of anti-palm oil has started to emerge in recent years in the European Union, spearheaded by movements of various non-governmental organizations. They raise environmental, social and health issues to convince policy makers to ban Indonesian palm oil. As a result, there is discrimination against Indonesian palm oil in the European Union market. One of them concerns its derivative products, namely biodiesel. The Indonesian government is contesting this discrimination at the World Trade Organization. Currently, the lawsuit has entered the stage of forming the panel.
The Deputy Minister of Trade, Jerry Sambuaga, who led the delegation in the palm oil discrimination lawsuit hearing at the WTO, considered that the various campaigns and prohibitions that occurred were a reflection of trade competition and did not stand on actual facts. "This is a reflection of their fear of the high competitiveness of Indonesian palm oil. If it competes in a healthy manner, Indonesian palm oil is much cheaper and more competitive than their vegetable oil made from rapeseed and the like, "said Deputy Minister of Trade Jerry in a press release, Tuesday (19/1/2021). Regarding the various accusations against Indonesian palm oil, Jerry also considered that they were groundless and not based on actual facts. "We have proven it at the WTO session. They have difficulties and cannot even answer when we ask about the aspects that become their reasons for banning Indonesian palm oil products. This proves that the real reason for this is the fear of openly competing with oil palm, ”added the Vice Minister of Trade.
Jerry emphasized that the Indonesian palm oil industry continues to progress towards a better condition in terms of environmental, sociological and health aspects. Indonesia, for example, is committed to protecting more than 50 percent of its forests in order to remain sustainable. This figure is far greater than the commitment of European Union countries, which currently only have forests for a dozen percent of their territory. Some countries even have less than 10 percent forest cover.
The Vice Minister of Trade considered that the campaigns by various NGOs in the European Union against Indonesian palm oil were carried out systematically. Therefore, Indonesia must carry out a counter-campaign so that the discourse on oil palm runs balanced and reflects a fair discourse competition. According to him, Indonesia and the countries of the European Union have both put forward the discourse of fair and inclusive free trade. The Vice Minister of Trade regrets that the anti-palm oil campaign was launched as a reflection of this violation of open fair trade.
The Vice Minister of Trade himself said that currently he and his team at the Ministry of Trade along with stakeholders in the palm oil industry are preparing a positive palm oil campaign. It is hoped that the Positive Palm Oil Campaign Team will be able to provide real views and insights about palm oil to the community both at home and abroad. "The palm oil industry is important for the Indonesian economy. Do not let negative and unfair campaigns threaten Indonesia's sovereignty and economic interests. We must fight for the welfare of the people as a whole, "said Jerry.
