REPUBLIKA.CO.ID, JAKARTA -- Researcher on law from Auriga Foundation Syahrul Fitra said the government would violate fiscal administrative procedure by taking a loan from Palm Oil Plantation Fund Management (BPDPKS).  

Syahrul explained, formally, BPBD's fund sourced from palm oil export charges. It managed by a public service agency (BLU) of a palm oil plantation fund management body. The fund managed by using BLU fund management scheme. 

Basically, there were some requirements in managing the fund. Syahrul said it should be managed by a budget and spending plan as spending ceiling. As it was a sectoral fund, palm oil fund should be allocated sectorally based on Law No. 39/2014 on Plantation. 

"There is no scheme for government loan as stated by Sri Mulyani. This cannot be taken by BPDPKS," said him Syahrul to Republika.co.id on Wednesday (May 3).  

Syahrul added even biofuel subsidy allocation was still debatable. Loan for Financial Ministry would be a negative precedent in the fund management by BPDPKS.  

Fund management for plantation was regulated in Law No. 39/2014 on Plantation. It stated that  government might collect plantation fund from export charges and retributions. 

The law also said that the fund could only allocated for restoration, research, human resoirce management, procurement and promotion. There was no allocation for biofuel subsidy.  

In fact, Corruption Eradication Commission (KPK) found that 89 percent of the fund were allocated for biofuel subsidy. KPK said it was an indication of corruption as most of the fund was taken by only three big companies.

President Director of BPDP Dono Boestami thanked KPK for the studies. KPK also gave some recommendation to BPDP. One of the recommendation was to conduct verification process system. 

"We have done the recommendation," said him.