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Audit on Palm Oil Companies Will Begin: Luhut

7 June 2022 16:34 WIB

TEMPO.CO, JakartaCoordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan stated that the government’s agenda to audit palm oil companies operating in the country has officially begun as he has signed the letter.

“Audit on [palm oil] companies will begin. I signed [the letter] today. The BPKP (Development Finance Comptroller) will observe it later,” said Luhut today, June 7, in Karawang.

President Joko "Jokowi" Widodo ordered Luhut to resolve the cooking oil fiasco, especially in the Java and Bali regions. The latter thus coordinated with the Coordinating Ministry for Economic Affairs, the Trade Ministry, the Industry Ministry, and other related institutions.

The audit is aimed at inspecting the governance of the cooking oil industry from upstream to downstream following the soaring price of the commodity in the domestic market.

Luhut claimed the commodity supply is getting more controlled. Yet the distribution is still problematic. On the other hand, the price of fresh fruit bunches or FFB at the farmer level remains low.

In the next one to two weeks, Luhut hoped the FFB price could reach Rp2,500 per kilogram. He also argued that the price will improve after the flush-out program, which allows the export of two million tons of existing palm oil products stock, is implemented. 

BISNIS.COM | RIANI SANUSI PUTRI

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