JAKARTA, May 4 Asia Pulse - The implementation of the government's palmoil sector policy has been lambasted by the association of palm oilcompanies (Gapki).
Gapki claimed that a number of palm oil factories have been allowed tooperate despite not having access to a supply of raw materials.
Many simply do not own oil palm plantations, Gapki said.
Gapki chairman Derom Bangun said the policy has led factory owners to relymore on stolen oil palm fruits to feed their factories.
Bangun said in some districts factories have been established where theyare not required, and are therefore not efficient.
Franky Oesman Widjaja, the president of PT Sinar Mas, a major palm oilcompany, said many palm oil processing plants are struggling to cope witha shortage of raw material supply.
Franky said the authorities are not consistent in implementing thegovernment policy, which is said to state that a palm oil factory isrequired to have oil palm plantations to guarantee a supply of feedstock.