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The Portion of Palm Oil Profit Sharing Might Not Qualify the Needs to Develop Palm Oil Sector in the Region

Doc. InfoSAWIT
The Portion of Palm Oil Profit Sharing Might Not Qualify the Needs to Develop Palm Oil Sector in the Region

InfoSAWIT, JAKARTA – Jambi Province where palm oil plantations develop for about 1.134.640 hectares, plays significant roles in plantation industries in Indonesia.

Head of Plantation Agency Jambi Province, Agus Rizal said that the sector has big potential to welfare the planters and implementation of Regional Action Plan Sustainable Palm Oil or agrarian reformation and natural resource distribution.

But it needs to note that the formulation of the Regulation of Minister of Finance Number 93 / 2023 has misunderstanding in the field realization. To get smallholders’ data, as the first thing to agrarian reformation, it faces big challenges in fund needs.

Agus Rizal told that it needs to revise the regulation to confirm that getting data of the smallholders would be more effective and accurate. In the event that Persatuan Organisasi Petani Sawit Indonesia (POPSI) conducted by the late of 2023, he also told that smallholders’ data process involved series of activity, such as, socialization in plantation level, escalating capacity of data team, data verification and validation. These would spend much.

It is also important to consider other aspects, such as, publication of cultivation documents, field check, the data which everything needs fund allocation significantly for the agency to do, for the officers in duty, and other supporting infrastructures.

Besides, development for getting Indonesian Sustainable Palm Oil (ISPO) certificate would be crucial to support sustainability. This should get the data of planters, do socialization, trainings and development. To support these, honor for trainers should be given, transportation, and infrastructure, map and certification.

He continued, palm oil profit sharing in Jambi Province in 2024 should cover these goals. The fund should cover to deliver or publish ISPO certificate and 2.500 cultivation documents equally in every district in Jambi. The program also involves social guarantee of labors for 420 labors in smallholders’ plantation of 21 institutions in 7 districts that got advantages from the program.

“By optimizing palm oil profit sharing fund, Jambi Province would try its best to create positive impacts which are sustainable for planters and people around. Through agrarian reformation and natural resource distribution, it is hoped palm oil sector would be the backbone of inclusive and sustainable economy in Jambi Province,” Agus Rizal said. (T2)