InfoSAWIT, JAKARTA – Director of Palm Oil Plantation Fund Management Agency (PFMA) Eddy Abdurrahman said, independent smallholders face many same challenges in their plantation cultivation, such as, supply chain from the plantations to the mills, bad infrastructures, low productivity, lack of knowledge and skills to get good agricultural practices, limited access to the latest technology in agriculture practices, the lack of supports in certification process.
“These are urgent to be solved by having the most effective solution,” he said in an event in Jakarta that InfoSAWIT attended by the late of September 2023.
How to solve the issues? Of course, it is significant for the Government of Indonesia to get upstream to downstream integrated strategies, such as, by implementing biodiesel mandatory program which has been running since 2015 to reinforce bargaining position of Indonesia and reduce export dependence.
“By having more demands on palm oil up to 10 to 11 million tons per year in biodiesel production, of course, this would help absorb fresh fruit bunch (FFB) production from independent smallholders,” he said.
The government delivered alternatives to get smallholders replanting program (SRP) proposal. With partnership scheme, smallholders’ unions would get more benefits, such as, the help of resource from the company to make sure that SRP would run successfully.
“The government has done the best to accelerate SRP targets by having partnership with the companies. The smallholders should cooperate with the companies (the partners) and commit to get the same profits and reinforce one to another,” he said. (T2)