VIVAnews - The oil palm industry in Indonesia has rapidly developed within the last 30 years. The growth helps the country to avoid proposing loans for the industry. Therefore, Indonesia will not receive the loan offer from the World Bank and the International Finance Corporation (IFC).
By August 31, 2010, Indonesia will participate in the World Bank Group Consultation on Oil Palm in Frankfurt, Germany.
According to Deputy Minister of Trade Mahendra Siregar, the World Bank and the IFC have been carried out credit moratorium due to pressures on sustainability. Indonesia expects that the World Bank and the IFC will have a new framework on palm oil in the next meeting.
"The framework must be concerned on how oil palm is seen as the balanced fusion between the environment, economy, and people's welfare," said Mahendra yesterday, August 26.
According to Mahendra, the World Bank had an important role thirty years ago in developing oil palm industry in Indonesia by channeling loans to troubled oil palm planters.
"Today, oil palm producers get loan facilities from banking," he said.
If the loans are kept disbursed, according to Mahendra. thet will be distributed to small oil palm planters which reach 45 percent. "Oil palm industry is changing. There are big players in the industry. They can propose for loans alone," he said.
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Coverage by: Iwan Kurniawan
Translated by: Bonardo Maulana W
