Indonesia’s palm oil fund agency has restarted its fund disbursement to subsidize biodiesel and oil palm tree replanting programs, following a short suspension during an internal reorganization. The announcement was made by Achmad Maulizal, an official from the agency, on Wednesday.
The temporary halt in disbursement occurred last week as the agency underwent structural changes. This followed a government decision to expand its responsibilities to include the management of cocoa and coconut programs, including their replanting initiatives.
The agency, now renamed the Plantation Fund Management Agency, resumed its activities after the finance ministry issued a decree outlining its new functions. These include financing programs for food security and enhancing the processing industry for plantation products.
The decree made public on Wednesday, did not introduce a new levy collection mechanism to support the agency’s expanded mandate.
Before its restructuring, the agency funded its programs through levies collected on palm oil exports. The continuation of this model under the new framework has not yet been clarified.
The resumption of fund disbursement is expected to provide momentum for the biodiesel and replanting programs, which are critical for Indonesia’s sustainability and agricultural development goals.
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