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Mumbai, 15 April (Commoditiescontrol): On Monday, Indonesia's Deputy Finance Minister announced the creation of a new task force to improve governance in the country's palm oil plantation sector. As the world's largest producer and exporter of palm oil, Indonesia is taking steps to ensure that companies comply with various rules, including tax payments and land permits. The decision to form the task force came after an industry-wide audit conducted last year, prompted by a scarcity of cooking oil supplies that led to the suspension of some palm oil exports for three weeks, shocking the global vegetable oil market.
The task force will be headed by Deputy Finance Minister Suahasil Nazara, who stated that the government intends to improve compliance across the palm oil industry. In addition to verifying land permits and payments to the state, the ministry's tax office is also updating its data on companies' plantation areas.
During the first stage of the audit conducted last year, it was discovered that 16.8 million hectares of Indonesian land were planted with oil palm, which is bigger than the 16.38 million hectares recorded in the official database. The audit aimed to collect data on the size of each plantation, its legal status, production level, and output prices. This information is intended to improve transparency in the sector and better protect forests.
Indonesia's palm oil exports for the first three months of 2023 were valued at $5.92 billion, down 11.3% from the same period in 2022, primarily due to falling prices. The formation of the task force is expected to bolster the industry's compliance with rules and regulations, helping to ensure the sector remains a key contributor to the country's economy while preserving its natural resources.
(By Commoditiescontrol Bureau; +91-9820130172)
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