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<\/p>\nJAKARTA \u2013 Economic Coordinating Minister Airlangga Hartarto said that the realization of replanting program for smallholders\u2019 oil palm plantations in 2023 reached 53,012 hectares or an increase of 72.35% compared to that of 2022 at 30,759 Ha.<\/p>\n
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He said that during the year fund distributed for the replanting program amounted to Rp1.5 trillion for 21,020 smallholders.<\/p>\n
Speaking to reporters after attending a cabinet meeting led by President Joko Widodo (Jokowi) at the state palace in Jakarta on Tuesday (27\/02\/2024), Minister Airlangga highlighted several crucial points discussed in the meeting, which include the realization of the replanting program implementation, which was only 30% of the set target of \u00a0180,000 Ha in 2023.<\/p>\n
“One of the problems hindering the replanting implementation is regulations. During the meeting, the agriculture ministry was asked to review the agriculture minister regulation on the replanting. Growers are only allowed to join replanting program if they have certificates and recommendation from the environment and forestry ministry (KLHK),\u201d said Airlangga.<\/p>\n
Airlangga said that the main obstacle facing growers in replanting is the regulation that makes it difficult for smallholders to join the replanting program.<\/p>\n
Under the replanting program, during the first year smallholders will receive from the government an assistance fund of Rp30 million per hectare, which is only eligible for the maximum of 4.0 hectare plantation areas. For the second year and beyond, the growers can utilize the people\u2019s business credits (KUR) with the maximum limit of Rp500 million and interest rate of 6.0% per year.<\/p>\n
But currently, the government is considering to double the replanting aid fund from Rp30 million to Rp60 per hectare, which is expected to be enough to cover the cost of planting, maintaining, intercrops development, and mentoring until reaching the palm production period.<\/p>\n
“We also propose to raise the replanting aid fund from the current Rp30 million to Rp60 million per hectare. Why raised to Rp60 million? It\u2019s because based on academic study and dialogs with the growers, after replanting they can only harvest at the age of four years. So, they need supporting fund until that harvesting time,” Airlangga said.<\/p>\n
In addition to that, the oil palm plantation fund management board (BPDPKS) is preparing a scholarship program, which is aimed to prepare quality human resources to support the production of sustainable palm oil in Indonesia.<\/p>\n