Indonesia: The Palm Oil Plantation Fund Management Agency is still waiting for the government's direction regarding transformation into the Plantation Fund Management Agency

Published 2024년 10월 24일

Tridge summary

The Indonesian government has announced the renaming of the Palm Oil Plantation Fund Management Agency (BPDPKS) to the Plantation Fund Management Agency (BPDP), expanding its oversight to include cocoa and coconut commodities, as per Presidential Regulation No. 132/2024. This change has gained support from the Indonesian Palm Oil Entrepreneurs Association (GAPKI), but concerns have been raised about the need for effective institutional governance and the necessity of maintaining palm oil levy funds within the industry. The article highlights the ongoing nature of the transition and the uncertainty regarding the levy scheme and policies post-restructuring, with a particular focus on the future of the People's Oil Palm Rejuvenation (PSR) program, a key initiative funded by palm oil levies.

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Original content

Reporter: Leni Wandira | Editor: Tri Sulistiowati KONTAN.CO.ID - JAKARTA. The government has officially changed the Palm Oil Plantation Fund Management Agency (BPDPKS) to the Plantation Fund Management Agency (BPDP) which will manage not only palm oil, but also cocoa and coconut commodities. This decision is stated in Presidential Regulation (Perpres) No. 132/2024. Responding to the change, the General Chairperson of the Indonesian Palm Oil Entrepreneurs Association (GAPKI), Eddy Martono, expressed his support for this transformation, but he reminded of the importance of good institutional governance. Eddy also emphasized that palm oil levy funds should remain focused on the interests of the palm oil industry and not be used for other commodities. "The palm oil industry still faces significant challenges, including stagnant production and declining productivity. Domestic demand for crude palm oil (CPO) also continues to increase in line with the government's ambition to achieve ...

Source: Kontan