InfoSAWIT, JAKARTA – The Government of Indonesia keeps encouraging smallholders replanting program (SRP) as part of escalating plantation productivity and quality.

In 2023, SRP realization laid on about 53.012 hectares. The numbers showed the significant progress up to 72,35% compared to the previous year that laid on about 30.759 hectares. SRP fund in the same year reached about Rp 1,5 trillion for 21.020 smallholders.

Coordinator Minister in Economy, Airlangga Hartarto in his press conference told in Kompleks Istana Kepresidenan, Tuesday (27/02/2024) told some significant things in SRP. The realization was far from the targets or only about 30% from 180.000 hectares. He mentioned one main obstacle was the regulation to get SRP for smallholders.

They got SRP fund about Rp 30 million per hectare in the first year within maximal plantations 4 hectares. The second year and the rests, they should take advantages on kredit usaha rakyat (KUR) within maximal loan up to Rp 500 million and 6% interest rate per year.

After realizing these, it was proposed to escalate SRP fund to be Rp 60 million for plantation nursery, intercrops, development, until their plantations deliver fresh fruit bunch within the total cost up to Rp 10,8 trillion.

This was from the academic study and communication with many planters that said Rp 30 million would be enough for living costs in the first year of SRP.

Besides, the government through Palm Oil Plantation Fund Management Agency is preparing the scholarship program to get reliable human resources in palm oil industries, just as same as what the industries are facing and sustainable principles.

He also emphasized it needs to solve the issues about ‘too late’ plantations for the smallholders and TORA (Tanah Objek Reforma Agraria) immediately. (T2)