PMFA Ensures Follow Up on SRP Fund Escalates to be Rp 60 Million

PMFA Ensures Follow Up on SRP Fund Escalates to be Rp 60 Million

InfoSAWIT, JAKARTA – Palm Oil Plantation Fund Management Agency (PFMA) agreed to escalate the numbers in smallholders replanting program (SRP) to smallholders within maximal plantations – 4 (four) hectares per family and about Rp 60 million per hectare.

But the numbers of cash are not approved by Steering Committee of PFMA which consists of some ministers within Coordinator Minister in Economy as the chairman. It means, PFMA would only propose it.

It was revealed in the meeting with many smallholders with PFMA and General Directorate of Plantation Ministry of Agriculture which Chairman of Indonesian Representative facilitated.

In the meeting, Chairman of Indonesian Representative was with some Legislators, such as, from Bustami Zainuddin (Lampung), M Syukur (Jambi), and Abdullah Puteh (Aceh), and Special Staff of Indonesian Representative, Sefdin Syaifudin.

The smallholders were represented by Kobar Sembiring and Soaduon Sitorus (Jaringan Petani Sawit Nasional), and Pahala Sibuea (Persatuan Organisasi Petani Sawit/POPSI).

Director of PFMA, Eddy Abdurrachman; Director of Finance, Zaid Burhan Ibrahim; and Head Division of USDM, Adi Sucipto; Ministry of Agriculture was represented by Director of Plantation Product Marketing and Process in duty, General Directorate of Plantation, Baginda Siagian; and Sub Coordinator of Domestic Marketing General Directorate of Plantation, Elvy Risma did attend the meeting.

"What the government decided through Steering Committee was that the numbers reached Rp 30 million per hectare from the previous reaching Rp 26 million per hectare. It is not enough still. Rp 30 million was used only to plant only. We proposed to evaluate or re-view the numbers. But everything is decided by the Steering Committee,” Eddy Abdurrachman said in the 8th Floor of Gedung Nusantara III Komplek Parlemen Senayan, Jakarta, as in the official statement to InfoSAWIT, Thursday (11/8/2022).

Eddy also agreed to escalate the smallholders’ quality to develop their independency but the basic concept of the government is that the 30 million rupiah is in the form of grant. The smallholders could facilitate the helps from kredit usaha rakyat within the low interests.

He continued, PFMA is the technical executor from what the steering committee decided, which consists of eight ministers which Coordinator Minister in Economy, Airlangga Hartarto as the chairman.

Eddy thought, PFMA as the public service obligation was established by the government within the goal, to increase smallholders’ fresh fruit bunch which gets the impact because of the significant cheap crude palm oil.

This is the impact of the increasing production but unfortunately, the absorption in the markets is not good enough. “The government keeps supporting that palm oil absorption in the markets could be more and more. This was also the reason to establish PFMA to escalate the absorption and to make FFB or CPO better again,” he said. (T2)