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Oil Palm Estate Fund struggling to complete tasks
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President Joko “Jokowi” Widodo plants a young oil palm tree to kick off the oil palm tree replanting program in Musi Banyuasin regency, South Sumatra, on Oct. 13. (Courtesy of/The Indonesian Palm Oil Association ( GAPKI) )
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n his remarks during the first ever oil palm replanting ceremony in Musi Banyuasin, South Sumatra, on Friday, President Joko “Jokowi” Widodo said the effort covered around 4,400 hectares.
Of the 4,400-ha, however, only 2,800-ha had been declared clean and clear.
The remaining plots of land, despite having obtained legal certificates, were located within the forest area and could not be converted to plantations just yet, The Indonesian Oil Palm Estate Fund’s (BPDP-KS) supervisory board chairman, Rusman Heriawan, told The Jakarta Post on Sunday.
However, he said it was not a big deal as the Environment and Forestry Ministry and the Office of the Coordinating Economic Minister would process the land conversions.
“Perhaps this is what people refer to as the [BPDP’s] bureaucratic problems,” he said. “This is a good lesson so that similar issues don’t arise in other regions in the future. Once started, it’s impossible to stop the replanting efforts.”
The replanting program is among the BPDP’s tasks to support the government’s sustainable oil palm development program. The tasks include research and development on oil palm, promotions, improving infrastructure, developing biodiesel, pushing replanting efforts and educating people on issues related to oil palm.
The government collected Rp 11.7 trillion (US$870.5 million) of the crude palm oil (CPO) supporting fund (CSF) for the BPDP last year, with Rp 10.6 trillion, or 90 percent of the fund, allocated for biodiesel subsidies.
