GAPKI responds to the creation of a plantation fund management body to replace BPDPKS

Jakarta The Indonesian Palm Oil Entrepreneurs Association (Gapki) gave a positive response regarding the establishment of a plantation fund management body, which is regulated by Presidential Regulation (Perpres) No. 132/2024. The general president of Gapki, Eddy Martono, stressed that the existence of this agency can support significant financing needs for the palm oil sector, provided that the funds generated are maintained.

Eddy said: “The palm oil sector still needs a lot of funds for various purposes, including smallholder palm oil rejuvenation (SWP), biodiesel incentives, as well as research and development. Against the backdrop of stagnant production and declining productivity, he stressed that RPS must be a top priority, especially since Indonesia is the world's largest producer and consumer of palm oil .

It is important to immediately increase productivity and production, as the government plans to implement a mandatory biodiesel policy, starting with B40 and continuing up to B50. Presidential Decree No. Law No. 132/2024, signed by President Joko Widodo on October 18, 2024, provides for the creation of a plantation funds management agency whose mission is to collect, manage and distribute funds for the sector plantations, including palm oil, cocoa and coconut.

The funds collected will be used for human resource development, research, promotion, rejuvenation and construction of plantation facilities and infrastructure. Article 11(1) of the Presidential Decree states that the use of these funds will help meet the needs of the downstream food, biofuel and plantation industries.

Regarding the establishment of the Plantation Fund Management Agency, BPDPKS Corporate Division Head Achmad Maulizal Sutawijaya confirmed that BPDPKS would change its name and expand its functions to include cocoa and coconut. He explained, “It was like that” when asked about the transition.

In accordance with Presidential Decree 132/2024, the creation of the Plantation Fund Management Agency is planned no later than three months after its promulgation on October 18, 2024. Thus, Presidential Decree no. 61/2015 regarding the collection and use of funds from previously existing oil palm plantations will be repealed and declared invalid.

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