Today the Palm Plantation
Fund Management Board (BPDPKS) were concentrating effort on two areas, i.e.
rejuvenation of farmers’ palm plantations and subsidy for bio diesel processing.
However BPDPKS was open to any suggestion related to CPO industry disclosed
this on Friday (24/7).
The sound underlying principle adopted by Board was “palm
to palm” meaning fund from palm industry for re-investment in palm industry,
not elsewhere. Thereby it was expected that mis spending of budget the way it
happened in the past such as “fund from palm for reboisation” would never
happen again.
Palm rejuvenation was a priority because it was the core
problem of people’s plantation. Indonesia was once a number one CPO exporter in
the world but now not anymore because there was no rejuvenation plan. Now
rubber, coffee, and clover were having problem because there was no Government
support for people’s plantation.
The process or aid giving to farmers was by business,
i.e. Credit extention. “I fact palm business is prospective but farmers are
powerless when they have to face the bank. Here is where the Board play their
role to help them” Bayu said.
By the Board’s help credit for farmers could be on long
term basis because palm itself was a long term process, one life basic because
palm itself was a long term process, one life cycle might take 20 to 30 years.
The interest charged could be below market standard so farmers would not be too
heavily burdened.
Seed procurement by BPDPKS could guarantee that the seed
given were of high quality, provided by legal and certified distributors. The
problem that some land was not certified would be overcome with the help of the
Board.
The Rejuvenation process was not exercised by the Board
but by an independent third party. “There is a new business opportunity for
cooperative bodies who could do the task. We need more players because palm
rejuvenation is a Herculean,” Bayu said.
Each year there were 300,000 ha of palm plantations that
needed to be revitalized. The cost for palm rejuvenation was around Rp60
million per hectare. A legal company was needed to undertake the task because
the process needed rental of heavy equipments, fertilizer buying, labor etc.
BPDPKD was still scheming up the best mechanism for
rejuvenation process. There had been many inputs and they were being
considered. “there was a company wishing to finance pam rejuvenation process on
condition that the old palm trunks were given to them to be used as raw
material for pulp” Bayu said.
Subsidy for bio diesel from BPDPKS would pay for the
price difference between MOPS and bio diesel price. In accordance with the
regulation of the Ministry of Energy and Mineral Resources it was mandatory for
Pertamina to mix bio solar up to 20%. The handicap was the price difference
between MOPS and bio-diesel.
“With the provision of price difference there is n reason
for Pertamina not buy bio diesel at home. Now Pertamina is running a tender for
bio diesel supply” he said.
In terms of supply there was no problem at all. Today CPO
product came to 30 million tons. Of that amount the part to be processed into
trying oil was 8 million tons, export of CPO was still 19 million tons.
“So this year with B 15 the need for biodiesel came to
5.5 million tons. Exported CPO could be altered for bio diesel. No problem at
all” he said.
BPDPKS also financed research on the effect of bio-diesel
on vehicles. And the change in environment in terms of bio diesel. “Universities
which are automotive specialists like ITB and ITS are welcome to come up with
proposals, we will finance the project,” he said. (SS)
Business News - July 28, 2015
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