Category: Economics

Categories
Economics News

Oil Palm Farmers Meets Moeldoko, Laments Falling Prices

Oil Palm Farmers met with the Presidential Chief of Staff Moeldoko during his official visit to Batam, Riau Islands, Saturday (25/6).

Batam – Oil Palm Farmers have suffered losses from the falling prices of fresh fruit bunches (FFB) and they told their concerns directly to the Presidential Chief of Staff Moeldoko during his official visit to Batam, Riau Islands, Saturday (25/6).

Indonesian Oil Palm Farmers Association (Apkasindo) chairman Gulat Manurung revealed that the drop in the price of FFB happened in 22 provinces. As of June 23, the price fell to Rp 1,127 (0.76 US cents) per kilogram for independent farmers, and it dropped to Rp 2,002 per kilogram for partnered farmers.

“This price is 24-57 percent below the normal price determined by the Plantation Agencies in the 22 provinces. It certainly has multiple effects on farmers. We met Mr. Moeldoko to ask for advice. Because apart from being a Chief of Staff to the President, he is also the Apkasindo Board of Trustees and he understands the matter really well,” said Gulat.

According to Gulat, the drop in FFB prices was due to the amount of export taxes. Such as Export Duties, Export Levies, fulfillment of Domestic Market/Price Obligations (DMO/DPO), as well as accelerated “Flush Out” exports. The amount of these export taxes is unfortunately charged to farmers.

“Even though the price of Rotterdam CPO on June 23, 2022 reached US$1,450 per ton, farmers can only enjoy the FFB price of Rp 1,027 – Rp 2,002 per kilogram. Further, for farmers who can only sell to collectors, FFB is only valued at Rp 400 per kilogram,” explained Gulat.

Furthermore, Gulat demanded the government to apply Domestic Market/Price Obligation (DMO/DPO) and accelerated Flush Out (FO) exports as options, rather than legally bound actions.

“The Flush Out shipments should be made as an alternative for exporters unwilling to comply with the DMO/DPO scheme. So, if exporters do not wish to fulfill the DMO/DPO, they may replace it with a flush out scheme of 200 thousand US Dollars per ton,” he suggested.

Meanwhile, the Presidential Chief of Staff, Dr. Moeldoko told the farmers that he would try his best to advocate the increase of FFB Prices. “I will also immediately deliver these concerns and proposals to the President himself,” said Moeldoko.

Categories
Agrarian Economics News

Bringing Old Grains Back, President Jokowi Joins Moeldoko In Sorghum Debuts In East Sumba

Presidential Chief of Staff Moeldoko alongside President Joko Widodo harvested sorghum crops on Thursday (2/6), in Laipori Village, East Sumba, East Nusa Tenggara.

Waingapu, East Nusa Tenggara – Presidential Chief of Staff Dr. Moeldoko, on Thursday (2/6), has invited President Joko Widodo to plant and harvest sorghum food crops in Laipori Village, East Sumba regency, East Nusa Tenggara.

Amid the global geopolitical turmoil, Moeldoko has long been voicing his concern on the food crisis. The retired Indonesian military general has initiated the sorghum cultivation program, expecting the traditional crops to be an alternative food to rice, corn and wheat.

“It’s time for Sorghum to be widely cultivated in Indonesia. The plant is obdurate, a drought-tolerant crop. It can survive even in areas with less water resources, constant heat and low rainfall,” said Moeldoko.

Sorghum cultivation program in Kab. East Sumba is primarily being carried out in Laipori Village covering an area of ​​3,200 hectares. Another ​​800 hectares of land in Ngohung Village is also being used for the cultivation program.

In the 1970s, sorghum grain was easily found and widely consumed in East Nusa Tenggara. The plant can survive arid and semi arid tropics, turning marginal lands into productive ones. 

The former critical lands in East Sumba, for example, is now able to produce 15 tons of sorghum grains and is projected to result in Indonesian Rp 50 million profits.

Showing great adaptation to changing climate conditions, the plant is also rich in carbohydrates.  making it a suitable substitute for rice, corn and wheat.

In addition to climate change and geopolitical issues, the wide-ranging health and economic impacts of COVID-19 have put pressure on the country’s food security system. The president has called for actions on the issues of key staples supply, distribution, and price, following the warning of global food shortage made by the Food and Agriculture Organization (FAO).

“We want to have multiple [food] alternatives to be consumed [in this country]. Food diversification means we should not be dependent on rice, as we have corn, sago, and now we are bringing back our old crop, sorghum,” said President Jokowi.

Categories
Economics Kementerian Luar Negeri Indonesia News

Finland Signals Interests In Carbon-Neutral Partnership With Indonesia

Presidential Chief of Staff Moeldoko with Finland's Deputy Minister of Foreign Affairs in Bina Graha Building, Jakarta, on Tuesday (24/5).

Jakarta – Finland has shown an interest in Indonesia’s Nusantara Capital City (IKN), bringing some proposals to collaborate on the city development and foster the city-led sustainable development.

Meeting with the Presidential Chief of Staff Dr. Moeldoko, on Tuesday (24/5) at the Bina Graha Building, Jakarta, Finland’s Deputy Minister of Economic Affairs, Ann-Mari Kemell expressed the interest of the European country in developing the new capital city in East Kalimantan. 

“Indonesia should indeed learn from Finland on how to prepare a road-map for developing an  environmentally friendly city, so that it can support the 2060’s carbon neutral goal,” said Moeldoko.

According to the EPI index in 2016 (Environmental Performance Index) prepared by Yale and Columbia Universities, Finland is named the world’s cleanest and greenest country.

The world’s happiest country has been actively campaigning for the concept of sustainability. There are at least 6 cities in Finland that have succeeded in becoming eco-friendly and sustainable urban models, namely Helsinki, Espo, Vantaa, Turku, Tampere and Oulu.

“We came to the Executive Office of the President to share experiences with Indonesia in building sustainable cities. Moreover, the vision of building IKN is very much in line with the vision of Finland,” said Ann-Mari Kemell.

The Chief of Staff to the President, Dr. Moeldoko highly appreciated Finland’s interest to collaborate with Indonesia to build a sustainable IKN.

The relocation of Indonesia’s capital city to the Nusantara city in East Kalimantan, said Moeldoko, showcases Indonesia’s tangible efforts in globally reducing carbon emissions. IKN sends a message on the urgency of tackling climate change through the establishment of low-carbon cities. 

Among the first developing nations committed to the 2015 Paris climate agreement, Indonesia’s nationally determined contribution (NDC) plans to slash its emissions by 29% by 2030 against the business-as-usual projection. Within international funding, or the “conditional” scenario, the target goes up to 41%. Indonesia has also set its new net zero emissions or carbon-neutral target by 2060, which is 10 years earlier than initially indicated by the government.

In addition to the ratification of the Paris Agreement, Indonesia has enacted policies and programs to combat climate change by committing to reduction goals, setting domestic sectoral targets, and passing legislation and regulations. Among them is the Low Carbon Development and Green Economy policy stipulated under the National Medium-Term Development Plan (RPJMN) for 2020-2024. 

Categories
Deputies Deputy III Economics News

Farmers Talks to Moeldoko, Decry Palm Oil Export Ban

The Presidential Chief of Staff Moeldoko met the Indonesian Palm Oil Farmers Association (Apkasindo) at Bina Graha Building in Jakarta, Tuesday (17/5).

Jakarta – Meeting the Presidential Chief of Staff, the Indonesian Palm Oil Farmers Association (Apkasindo) conveyed their discontentment against palm oil export ban issued by the government late last month. The ban, according to the association, has led the fresh fruit bunch (TBS) prices to plummet, which further slashed the palm oil farmers’ income.

The Chairman of Apkasindo, Gulat Manurung, blamed the complicated bureaucracy and ineffective government’s policies. He specifically referred to the 2018 Agriculture Ministerial Decree on the purchase price of the palm oil fresh fruit bunches (Tandan Buah Segar/TBS). The regulated price is unfairly aimed only for farmers partnered with a palm oil company.

“In fact, there are only around 7 percent of farmers who are in partnership with palm oil companies. While the other 93 percent are independent palm oil farmers,” said Gulat. “The association demands the decree to be revised,” he added.

In addition, the association also cited the community-owned palm oil rejuvenation program (PSR) funded by the special public service agency, the Indonesian Oil Palm Estate Fund (BPDP-KS), as another disappointment. 

“Farmers have yet to be able to apply for the rejuvenation program. Not to mention, the app [software] of the program has been inaccessible in any devices in the past five months,” he added.

Meanwhile, Apkasindo directly met with the Chief of Staff at the Bina Graha Building in Jakarta after they staged a sizable street protest over the palm oil export ban in the capital city.

Carefully listening to the aspirations delivered by the farmers’ association himself, Moeldoko promised to forward the message to the President Joko Widodo. He also stressed that the farmers’ concern over the ban was an issue the government would pay attention to.

In the defense towards the policy, Moeldoko said that the government’s purpose behind the ban was to control the soaring price of cooking oil, in a bid to fulfill the local markets’ needs.

“It does not necessarily mean the President turns a blind eye to the palm oil farmers situation. The President is putting the farmers’ welfare as top consideration while guaranteeing affordable cooking oil supply for the public need. It is undeniable that the latter has created a broad impact in society’s daily life, too,“ Moeldoko said.

The Executive Office of the President, he said, would soon discuss the matter with the Agriculture Ministry and the BPDP-KS with the hope of finding a solution over the ineffective Ministerial decree and the rejuvenation program.

Moeldoko went on to say his appreciation to Apkasindo for administering the street protest in an orderly manner. “The government is all ears to the aspirations of the people. So, thank you Apkasindo for staging the protest peacefully,” he praised the farmers.

Categories
Agrarian Economics News

Moeldoko: Sorghum Can Make A Big Return In Sumba

Chief of Staff to the President, Moeldoko.

East Sumba – Chief of Staff to the President of the Republic of Indonesia Moeldoko said he was optimistic that Sumba would soon be known as one of the Sorghum main producers. He himself visited the sorghum cultivation area in Laipori Village, East Sumba Regency, NTT, on Thursday (6/1).

“Sumba has great potential to develop Sorghum plantations with its primarily dry land. I’m sure Sumba will become a home and a big producer of Sorghum in the country,” said Moeldoko.

According to him, people living in the island of Sumba have been familiar with the plant. Sorghum grain was easily found and widely consumed in East Nusa Tenggara (NTT). The constant heat and dry land in the area allowed the plant to flourish.

“The main question is why sorghum production and consumption cannot thrive here now. As a response to that, the Ministry of Agriculture has rolled out an education program for farmers to use their land to plant sorghum, which is projected to become a national food reserve,” said Moeldoko.

Moeldoko who is also the chairman of theThe Indonesian Farmers Association (HKTI) assessed that sorghum is rich in carbohydrates, able to improve nutrition and overcome stunting problems in the region. The plant was also able to adapt to changing climate conditions. “Sorghum also produces ethanol which can be used for fuel mixture,” continued the former TNI Commander.

Meanwhile, Director of Cereal Grain Food at the Ministry of Agriculture Ismail Wahab said the Ministry of Agriculture paid serious attention to the development of sorghum in the country. This year alone, the sorghum development program covered a total of 15 thousand hectares widely spread across the country.

“In the near future, we will plant sorghum on a 4,000 hectare land in Mamuru sub-district, Central Sumba. This will be the starting point for the successful development of sorghum on the island of Sumba,” said Ismail.