On January 22, Achmad Maulizal, an official of the Indonesian Plantation Fund Authority (formerly the Palm Oil Fund Agency), said the agency has resumed fund disbursement after a brief pause to support biodiesel subsidies and oil palm replanting programs.
This follows a comprehensive reorganization last week due to the expansion of the agency’s functions to include the management of cocoa and coconut projects, including replanting programs, which led to a temporary disruption in the disbursement of funds.
Following a decree from the Indonesian Ministry of Finance clarifying the new functions, the agency completed its name change and resumed normal operations.
Under the new decree, the Plantation Fund Authority will be responsible for food safety and financing programs for the plantation products processing industry, in addition to continuing to support the biodiesel subsidy and plantation programs.
Notably, the new decree makes no mention of any new tax programs to support the agency’s expanded responsibilities. Prior to this reorganization, the agency mainly financed its various programs through the collection of palm oil export taxes.
The move shows that the Indonesian government continues to advance its goals of sustainable agriculture and energy while deepening the integration and diversification of the plantation chain.