The Palm Oil Plantation Fund Management Agency (BPDPKS) is a non-echelon organizational unit within the Ministry of Finance under the Steering Committee headed by the Coordinating Minister for Economic Affairs.
The BPDPKS Steering Committee consists of the Coordinating Minister for Economic Affairs as chairman, with members consisting of the Minister of Agriculture, Minister of Finance, Minister of Industry, Minister of Trade, Minister of Energy and Mineral Resources, Minister of BUMN, and Minister of National Development Planning / Head of National Development Planning Agency .
BPDPKS activities are supervised by the Supervisory Board, amounting to 9 (nine) people, consisting of 6 (six) people from the Government and three from the professional element. Government elements come from officials from the Ministry of Finance, Ministry of Agriculture, Ministry of Industry, Ministry of Energy and Mineral Resources, Ministry of Trade, and Coordinating Ministry for Economic Affairs. Members of the Supervisory Board from the Government element are determined by the Minister of Finance based on proposals from each ministry. Whereas members of the Supervisory Board of professional elements are determined by the Minister of Finance based on proposals from the Steering Committee.
BPDPKS was formed by the Government to support the achievement of efforts to realize sustainable palm oil. In accordance with Presidential Regulation 61/2015 jo. Perpres 24/2016 jo. Perpres 66/2018, the Government assigns the task to BPDPKS to collect, develop and use the Palm Oil Plantation Fund for the benefit of the oil palm industry.
The formation of BPDPKS is motivated by conditions in the country and globally which require the presence of BPDPKS. In 2015, global economic conditions were hit by weakness which knocked down prices of several national mainstay commodities, one of which was palm oil (CPO) which dropped to the level of US $ 490 per ton. In addition, foreign exchange earnings from exports declined, the trade balance deficit, the rupiah exchange rate weakened, and state revenues were also disrupted.
Meanwhile, national and world palm oil production continues to increase, thus adding to the imbalance between supply ( supply ) and supply ( demand ) which results in a decline in palm oil prices and threatens the future of the palm oil industry, especially independent smallholders.
Apart from these conditions, oil reserves are limited and since 2014 Indonesia has become a net importer of petroleum. This situation makes Indonesia has a large dependence on crude oil imports while the government must provide subsidies so that the pressure on the APBN is also greater.
That's why there is a need for renewable energy to meet domestic fuel needs. However, the development of renewable energy from raw materials for Jatropha plantations is constrained by a number of factors so that other renewable energy sources are needed, one of which is palm oil.
Under these conditions, it is necessary to raise funds from the palm oil industry to create stability and increase the palm oil industry. Formation of BPDPKS is the solution.