JAKARTA – The replanting program for smallholders’ oil palm plantations (PSR) reached a total of 38,247 hectares in 2024, with a total financial assistance for smallholders reaching around Rp1.3  trillion. The achievement is still below the target set by the government at 70,000 Ha per year.

“It’s difficult, so it has not yet reached  the target. It can only be realized at  38,247 Ha with total financial assistance given to smallholders reaching Rp1.295 trillion,” the Plantation Fund Management Board (BPDP) President Eddy Abdurrachman said during a hearing with the Commission XI of the house of representatives (DPR) at Senayan complex, Jakarta, on Monday (17/2/2025).

Eddy said that a number of problems had hindered the implementation of the replanting program for smallholders. One of them concerns the requirements for joining the replanting program which he considers difficult.

“Farmers have difficulty in fulfilling the requirements for participating in the PSR program, especially regarding their locations being forest areas or not, and overlapping of cultivation rights with other companies,” he said.

Another obstacle is concerned with the price of fresh fruit bunches (FFB) which is currently higher than Rp3,000. Such condition had discouraged farmers from participating in the PSR program. The more so, because for many farmers the palm oil is their only source of livelihood.

According to him, another obstacle is partnerships with companies that are not yet optimal. “In the future, partnerships between companies and planters will be more encouraged,” he said.

He also underlined the importance of coordinating with other ministries/ institutions to simplify the requirements for smallholders to  participate in the PSR.

Previously, Economic Coordinating Minister Airlangga Hartarto said that since 2017 the implementation of PSR program for smallholders had only averaged at around 50,000 Ha per year. It is far behind the target of realization set previously by President Joko Widodo (Jokowi) at 180,000 ha per year.

“On average we have only reached around 50,000 ha per year and this is less than 30% of the target that the President (Jokowi) announced during his tenure at 180,000 ha per year,” said Airlangga at the National Coordination Meeting on the National Action Plan for Sustainable Palm Oil Plantations (RAN-KSB) for 2019-2024 at Hotel Indonesia Kempinski Jakarta, Thursday (28/3/2024). (*) Source: sawitkita.id