Jakarta, Indonesia Sentinel — one of his final moves as President of Indonesia, Joko Widodo (Jokowi) established the Plantation Fund Management Agency just two days before his term ended on October 18, 2024. This agency is tasked with collecting and managing export levies on key commodities such as palm oil, cocoa, and coconut.
The agency’s formation is outlined in Presidential Regulation No. 132 of 2024 concerning the Management of Plantation Funds.
According to the regulation, “The Plantation Fund Management Agency is a government body responsible for collecting, administering, managing, storing, and distributing funds,” as cited from Article 1 on Wednesday, October 23, 2024.
The fund’s primary objective is to promote sustainable development in Indonesia’s plantation sector. The collected funds come from various sources, including plantation businesses, financial institutions, the public, and other legitimate sources.
The key commodities managed under the agency’s mandate are palm oil, cocoa, and coconut. The regulation mandates that plantation businesses involved in exporting these commodities or their derivatives, as well as industries using raw materials from these plantations, are required to pay export levies and fees.
Exporters of these commodities are also subject to the levies, with specific derivative products determined by the Minister of Industry. Any shortfall in payment can result in administrative penalties, including fines.
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Article 20 of the regulation states that the Ministry of Finance is responsible for forming the Plantation Fund Management Agency. The agency is tasked with planning and budgeting, collecting and distributing funds, managing financial records, and ensuring accountability. It is also charged with oversight responsibilities.
As Jokowi prepared to leave office, the creation of this agency raises questions about its long-term impact and the motivation behind its establishment in the final days of his presidency.
(Becky)
