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SPKS Supported Ganjar Pranowo to Improve Smallholders’ Palm Oil Plantation Governance

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SPKS Supported Ganjar Pranowo to Improve Smallholders’ Palm Oil Plantation Governance

InfoSAWIT, JAKARTASerikat Petani Kelapa Sawit (SPKS) supported and appreciated what Ganjar Pranowo would do to what smallholders in Indonesia are facing.

Prior, when having campaign in West Kalimantan Province, South Sumatera, and North Sumatera, president candidate, Ganjar Pranowo told that the first thing, would be about to improve the ways in palm oil villages to ease transportation access and reduce transportation production costs from the smallholders.

The second, he would try to stabilize fresh fruit bunch (FFB) price in smallholders’ levels and to get fair price to support their welfare and economy. The third, to accelerate agrarian reformation for smallholders; the fourth, would escalate palm oil industrial governance by establishing palm oil agency which would be supervised by president and its level is below the president.

Considering these, Chairman of SPKS, Sabarudin said that what Ganjar Pranowo told are the main issues that 2,5 million smallholders face in Indonesia. The president candidate surely has insight to what smallholders are facing and he cares about the smallholders’ welfare.

“These years, the bad ways in many villages where palm oil plantations grow, made smallholders lost. There are additional costs to spend about Rp. 100 – 200/Kg. This also made the smallholders’ FFB in lower quality. The bad ways forced the trucks to stay at night before they even delivered FFB to mills,” he said, as in the official statement to InfoSAWIT, Monday (12/2/2024).

Sabarudin also told smallholders’ FFB price is not fair because about 70 percent of the smallholders should sell theirs to middlemen within much cheaper than what plantation agency decided every month. We calculated that the smallholders got loss about 30-40 percent for selling theirs to middlemen.

With the cheaper price, this would deliver losses for the smallholders because they could not afford fertilizers and nurse their plantations in good agricultural practices. These made their plantation productivity much lower.

About palm oil agency which is available, Palm Oil Plantation Fund Management Agency (PFMA), still has issue. He thought this institution delivered profits more to big palm oil companies. This can be seen from fund that PFMA gathered that reached up to Rp 137,8 trillion in 2015 – 2021. From export tax, Rp. 110, 05 trillion or 80,16 percent were distributed to big companies through biodiesel (B35) program, while the rest about 389,3 trillion rupiah or 5 percent only to smallholders through smallholders replanting program.

“If Ganjar Pranowo would establish palm oil agency led by president, it is hoped that it needs to reinforce PFMA. The coordinators in the agency should not involve the palm oil ‘rich men’s’ roles that for all these years, they mastered PFMA. The fund allocation should prioritize smallholders,” he said.

Sabarudin also encourage president candidate, Ganjar Pranowo and others, if they win the contest, should improve biodiesel program governance which delivered profits for ‘the wealthy’ but did not deliver impacts for smallholders. It also needs to accelerate palm oil downstream program to make smallholders as the main actors. (T2)