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Jokowi orders oil palm agency's expansion to cacao, coconuts
Airlangga Hartarto announced on Wednesday that the government, on the President's instruction, would be establishing a new department at the BPDPKS to oversee development of the cacao and coconut industries.
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A farmer dries cacao beans on Jan. 18, 2022 in Toabo village of Mamuju regency in West Sulawesi, a major cacao-producing province. (Antara/Akbar Tado)
P
resident Joko “Jokowi” Widodo has expanded the scope of the Oil Palm Plantation Fund Management Agency (BPDPKS) to oversee cacao and coconut cultivation on top of oil palm.
Coordinating Economic Minister Airlangga Hartarto announced the decision on Wednesday, following a meeting with the President at the State Palace.
“The instruction from Pak [Mr.] President was to arrange additional tasks for the BPDPKS, that is, to put it in charge of replanting and developing the cacao and coconut industries,” Airlangga said, as quoted as by Kontan.co.id.
The senior minister noted that cacao production currently stood at 180,000 tonnes and coconut production at 2.8 million tonnes, and that the two commodities had export values of respectively US$1.3 billion and $1.2 billion.
With a total cultivation area of 1.3 million hectares, local cacao plantations supply 45 percent of domestic raw material needs, with the remaining 55 percent imported.
Airlangga also said cacao was currently subject to export duties of 15 percent at a reference price of $3,500 per tonne.
“The export duties will be converted to export tax. When they’re converted to export tax, [the funds] can be managed by the BPDPKS,” explained Airlangga, who also heads the agency’s steering committee, adding that the export tax for coconut was being discussed.
