Palm growers often
expressed their grievances about lack of Government attention. In case of
fertilizer for example, palm growers must buy fertilizers at double the price of
normal farmer’s price as the commodities were not subsidized.
According to Hendrajad Natiwidjaja, Director of Annual
Plantation, Director General of Plantation, Ministry of Agriculture the problem
was that there was no specified data on palm farmers. Palm farmers processing
land under 2 ha were in fact entitled to allocated subsidized fertilizer.
Request for subsidized fertilizer must be forwarded by
farmers group as definitive collective need signed by local agriculture
illuminators. The problem was that in applying for fertilizers to the ministry
of Finance it was required to specify the number of farmers group applying.
“This was the reason that made us difficult in requesting
for subsidized fertilizers for palm farmers. The problem was that the data was
non-existent. Subsidized fertilizers were much absorbed by sugarcane farmers as
they were assisted by sugar mills so the data was available, complete and
specified.” Hendradjad remarked.
It was this data shortage that made it difficult for
farmers to obtain seeds and fertilizers for plantation rejuvenating by the
Government. Data of applicant and the land simply did not match.
For that matter Hendradjad had asked the Regents to
compile data of plantation farmers. As written in the Law on Plantation Law for
land above 25 ha Regent’s permit was needed, but for land less than 25 ha a
letter of Recommendation from the local Plantation Official be sufficient
Subsidized fertilizers were only given to qualified farmers.
So far most of the Regents had not executed message of
the Plantation Law. in case of permit for big plantations, as they were related
to regional income, they were mostly already executed but the list was
extremely short.
“I have asked the
Regents to collect data. This is most important because in the future
plantation companies must be ISPO certified. ISPO is abbreviation of Indonesia
Sustainable Palm Oil. Without ISPO certificate, neither the Fresh Plums [TBS]
nor the CPO could be sold. The most important aspect in ISPO is legality for the
company for HGU Forest Utilization. For farmers, the mandatory thing is
cultivation permit and land permit.” Hendrajad remarked.
Palm Grower Associations like the Association of Palm
Farmers, the Indonesia Palm Farmers Union, and Ex PIR Palm Farmers etc were
asked to insist Regents to do certification.
Separately Anizar Simanjuntak, Chairman of APKASINDO
stated that in the era of past Government palm farmers position had not been
advancing significantly, as indicated by palm farmers bewing edged aside in the
pursuit for good welfare, powerless farmer’s Institutions, conflict between
framers and companies, measly budget and fund, disadvantageous rules to
farmers, mild section on companies not doing partnership or partnership not
properly done.
“Although it was clear that palm contribute significantly
to state’s income through export tax, and palm growers’ contribution is just as
much, they are never prioritized as beneficiary of palm industry development”
he said.
In year 2020 total palm plantation area would come to 6
million ha, exceeding that of private and PTPN area. Today the highest
expansion rate of people’s plantation area was posted at 10%. “With this vast
area we hope that the Government would pay more attention. We are also
consolidating so we can have stronger bargaining position” he said.
Apkasindo would strive to increase selling price of fresh
plumes which was often low. “To play by the rule supposedly price of plumes was
Rp.1,500 – Rp.2,000/kg. Today many are priced at only Rp.1,000/kg. Today the
Government could not do anything if there was any palm factory which do not
follow Government’s price standard. We will insist the Government to put
sanction on such companies” Hendrajad remarked.
CPO export tax should better be returned to farmers for
building road and infra-structures and rejuvenating people’s palm plantation;
procuring subsidized premium seeds; to develop human resources and strengthen
Apkasindo as well as certify farmers’ plantation. (SS)
Business News - November 14, 2014
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