Overview

Plantation Fund Management Agency (BPDP)

The Plantation Fund Management Agency (BPDP) is a non-echelon organization responsible for managing the Palm Oil Plantation Fund under the supervision of and reporting to the Minister of Finance of the Republic of Indonesia.

Duties and Responsibilities

BPDP is tasked with managing the Palm Oil, Cocoa and Coconut Plantation Fund in accordance with policies set by the Steering Committee, while also aligning with government programs. The Steering Committee consists of eight ministries, namely:

  1. Coordinating Ministry for Economic Affairs (Chair)
  2. Ministry of Finance
  3. Ministry of Agriculture
  4. Ministry of Industry
  5. Ministry of Trade
  6. Ministry of Energy and Mineral Resources
  7. Ministry of State-Owned Enterprises
  8. Ministry of National Development Planning (Bappenas)

BPDP was officially designated as a Public Service Agency (BLU), with its organizational structure and work procedures established through Minister of Finance Regulation No. 113/PMK.01/2015, issued on June 10, 2015.

Legal Foundation & Formation

BPDP was established as part of the mandate of Article 93 of Law No. 39 of 2014 on Plantations, which states that funds must be collected from plantation business operators—commonly known as the CPO Supporting Fund (CSF)—to support the sustainable development of Indonesia’s palm oil industry.

Objectives of the Sustainable Plantation Development Program

BPDP implements various programs aimed at:

  • Supporting research and development in the palm oil sector
  • Promoting business opportunities within the industry
  • Enhancing infrastructure and facilities for palm oil industrial development
  • Developing biodiesel as an alternative energy source
  • Replanting oil palm plantations to improve productivity
  • Expanding business partnerships and increasing exports
  • Educating and empowering human resources within the palm oil sector

Regulatory Oversight

BPDPKS operates under two main supervisory bodies within the Ministry of Finance:

  • Technical Supervision: Directorate of Investment Management System (Dit. SMI)
  • Financial Oversight: Directorate of Public Service Agency Finance Management (Dit. PPK BLU)

Fund Collection & Levy System

BPDP collects funds through:

  • Export Levies: Imposed on palm oil, crude palm oil (CPO), and their derivatives

     

Legal Framework & Regulations

The establishment and operations of BPDP are based on the following regulations and laws:

  • Law No. 17 of 2003 on State Finance
  • Law No. 39 of 2014 on Plantations
  • Government Regulation No. 24 of 2015 on Plantation Fund Collection
  • Presidential Regulation No. 61 of 2015 on Collection and Utilization of Palm Oil Plantation Funds
  • Minister of Finance Regulation No. 133 of 2015 on Export Levies
  • Minister of Finance Regulation No. 113 of 2015 on BPDPKS Organization and Work Procedures