Ombudsman urges Indonesian government to create special agency for palm oil
Indonesian Ombudsman member Yeka Hendra Fatika has recommended that the government establish a special agency for palm oil affairs to help eliminate current overlaps in licensing regarding the development of the palm oil industry.
“The government must have an agency that handles the affairs of the palm oil industry from upstream to downstream,” he remarked while delivering a report on the prevention of maladministration in the palm oil industry governance services here on Monday.
Fatika targeted the special agency for palm oil affairs to be operated directly under the president and be in the form of a Public Service Agency to realize sustainable palm oil industry governance.
He explained that the palm oil industry development requires a more robust structure than the existing task force or inter-ministerial work unit.
He pointed out that the development of the palm oil industry has its own complexities, both in terms of licensing and land management, thereby requiring one commander in the form of an agency under the president.
Fatika’s proposal for establishing the special agency also follows the steps of Malaysia, which already has an agency named the Malaysian Palm Oil Board.
The Indonesian Ombudsman believes that improving the governance of the palm oil industry can give an additional economic value of up to Rp279 trillion (USD1 = around Rp15,832)
The palm oil industry’s value, currently standing at Rp729 trillion, is projected to surge to Rp1,008 trillion following the proposed governance enhancement, according to Fatika.
He noted that the special agency must be empowered with substantial authority to regulate, assist, and supervise matters related to the palm oil industry.
This level of authority is deemed crucial, as the main problem in the sector’s governance is the policies governing the palm oil industry not being well integrated, which has created obstacles in achieving the industry objectives.
“That way, the policies (for palm oil industry development) can be more measured, monitored better, and I believe the services will be better,” he remarked.
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