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For the Sake of Palm Oil

Monday, 11 April 2022

The BPDPKS is formed to absorb CPO surplus. But the oil palm industry is given the red-carpet treatment.

A worker screens crude palm in a local palm oil factory in the Serdang Bedagai, North Sumatra, November 2011. REUTERS/Y.T Haryono/File Photo . tempo : 166465629063

THE Oil Palm Plantation Fund Management Agency (BPDPKS) was established because of the government’s wish to mitigate the drop in the price of crude palm oil (CPO) due to an oversupply. At the time, in 2015, Indonesia had produced 32 million tons of CPO, making the country the world’s greatest palm oil producer.

But the global market could not absorb all of the CPO. As a result, its price dropped and the oil palm industry was threaten

...

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