Smallholders’ Oil Palm Replanting Increases In 2023

KAMPAR — The realization of replanting for smallholders’ oil palm plantations has shown a rising trend during 2023. As of September 2023, the realization of the replanting program has reached 50,000 hectares.

In 2022, the realization of the replanting program was only around 17,000 hectares. “Greater efforts of replanting have been pursued by the stakeholders this year to increase the realization by the end of this year. As a result, there has been an increase in its realization that should be highly appreciated,” the agriculture ministry’s Plantation Director General Andi Nur Alam Syah said on the sidelines of a ceremony to inaugurate the replanting program for members of Berkat Ridho cooperatives in Kijang Makmur village of Tapung Hilir district in Kampar regency, Riau province, on Monday, 18 September 2023.

Present during the ceremony were the Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono, the Oil Palm Plantation Fund Management Board’s (BPDPKS) President Director Eddy Abdurrachman, Riau’s Plantation Service Head Zulfadli, Riau’s Chamber of Commerce and Industry (Kadin) Head Masuri, and Kampar Acting Regent M Firdaus.

The replanting program in Tapung Hilir is the first program under a partnership between members of Berkat Rhido cooperatives as plasma farmers and PT Buana Wiralestari Mas, a member company of GAPKI, as the nucleus estate. Under the replanting program that is sponsored by the Indonesian government, every plasma farmer will have a financial assistance of Rp30 million per hectare, which is distributed through the BPDPKS.

But despite the increase this year compared to those of the previous years, the realization of replanting in 2023 is actually still far below the target set by President Joko Widodo (Jokowi) at 180,000 hectares per year. There are still many problems in its implementation, although the government has simplified the replanting procedures, particularly through the agriculture minister regulation (Permentan) No:3/2022 on development of human resources, research and development, replanting and facilities and supporting infrastructure in the oil palm plantations.

”With the application of the Permentan No.3/2022 smallholders should no longer face problems in implementing the replanting of their plantations. They only need to prove their plantation ownership with required documents, and they are not located in forests,” said Andi.

But apparently, after simplification of the procedures the replanting realization has never reached the target of 180,000 hectares per year since the program was launched in 2016.

Eddy Martono pointed out that the problems include overlapping land sites as plantations and forests. For example, there are certified land sites owned by plasma farmers and under partnerships with nucleus estates, but then they are identified as part of forest areas. But as a matter of fact, their land certificates have been once used as collateral in banks when they got loans from banks for development of the plasma plantations.

”Besides, it’s difficult to get letters of recommendation that the land sites are not part of forests and not overlapping with cultivation rights (HGU). The high price of fresh fruit bunches (FFB) also discouraged the smallholders to implement replanting of their plantations although their oil palm trees are already old and need replanting,” said Eddy.

Riau Kadin Head Masuri added that the problem of overlapping is even worse in Riau. He mentioned as an example that the ministry of environment and forestry (KLHK) has determined that all areas of Bengkalis island (except Sudirman road in Bengkalis City) are peat protected areas.

”With that, can you imagine then all buildings in Bengkalis island violate the prevailing rules. All buildings, be it regent office building, police building, and the people’s houses. It’s true that farmers can file their proposals to change the legal status of their lands to the KLHK, but the process will take a very long time. It could be at least six months. Such process should be simplified,” said Masuri.

Eddy Abdurrahman said that since the implementation of replanting program in 2016 until August 2023, BPDPKS has distributed a total fund of Rp8.8 trillion to help finance the replanting of  295,000 Ha plantation areas owned by 13,032 smallholders.

He said that until now there are still 17 proposals being verified with a total plantation areas of more than 5,000 hectares. ”Due to low realization of replanting, the agriculture minister has issued Permentan No.3/2022 to accommodate replanting under partnership scheme, in addition to the ongoing program already implemented by the government. The partnerships are mainly pursued with member companies of GAPKI , which are expected to push up the replanting program,” said Abdurrahman. (*)

Source: Kompas.id