Farmers benefit from palm oil levies managed by BPDPKS
ILLUSTRATION. A farmer unloads oil palm fresh fruit bunches (FFB) from a boat during the flood season in Raja Bejamu Village, Rokan Hilir Regency, Riau, Wednesday (19/2/2020). The price of oil palm FFB in Rokan Hilir during the track period or decreased production in the plantations
Reporter: Noverius Laoli | Editor: Noverius Laoli
KONTAN.CO.ID – JAKARTA. The DPP of the Indonesian Palm Oil Farmers Association (Apkasindo) supports the sustainability and use of palm oil export levies under the management of the Oil Palm Plantation Fund Management Agency (BPDP-KS).
Export levies assist oil palm rejuvenation and human resource development. Moreover, BPDP-KS has just allocated Rp. 2.7 trillion for development in the upstream sector which includes renovation, facilities and infrastructure, as well as human resource development in the palm oil sector.
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“The levy funds are very beneficial for oil palm farmers. I want to convey that oil palm farmers are actually grateful for the benefits of export levies. If there are people who disagree with us, maybe they come from people who are not oil palm farmers so they don’t feel the benefits, “said General Chairman of Apkasindo Gulat Manurung, MP, in his official statement, Friday (June 5, 2020).
In his calculations, export levies have an impact on the FFB price of oil palm farmers. From the association’s calculation, the discount received is between Rp. 90-Rp. 110 / Kg FFB for each levy of US $ 50 per tonne of CPO.
“But farmers do not mind as long as the funds are used again to develop the palm oil sector. And oil palm farmers really feel the benefits. Although Indonesia was late in establishing BPDP-KS from Malaysia, which had established a similar institution for decades. However, this has been a great progress for the nation, “he said.
The oil palm levies fund helps the children of oil palm farmers / laborers to continue their education to higher education. Currently, there are 1,200 alumni of the D1 Palm Oil Program who have graduated. The Indonesian Palm Oil Taruna received education at the 5 best universities in the field of palm oil. In 2020, the number of universities will increase to 6 campuses.
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“They (Taruna) are children of farmers and farm laborers who are fully funded by BPDP-KS scholarships. They do not have the opportunity and opportunity to compete in public campuses due to various factors. Not to mention that around 1000 children are still in the process of studying, “concluded Gulat.
What is most felt is the Community Oil Palm Rejuvenation (PSR) program for smallholder plantations. Recently, the fund for oil palm replanting has been increased to IDR 30 million per hectare so that the benefits for farmers are increasingly felt. “We appreciate the attention of the Ministry of Finance through BPDP-KS which increases grant funds, especially during the Covid-19 Pandemic, giving new hope for the future of smallholder palm oil which has entered the second generation,” he explained.
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