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Palm Oil Profit Sharing: Does Not The Same with Field Reality

Foto by Dea Kinanti_Sawitfest 2021/ilustration of plantation
Palm Oil Profit Sharing: Does Not The Same with Field Reality

InfoSAWIT, JAMBI - Head of Plantation Agency Jambi Province, Agus Rizal said that the province within 1.134.640 hectares palm oil plantations would be the significant landscape in palm oil plantation industries in Indonesia. The numbers consisted of 66,66% of the smallholders’ plantations, 30,33% of the big private companies, and 3,01% of the Enterprises. This sector has big potential to welfare the planters and contribute planters in RAD KSB implementation 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 would spend much.

“That is why it needs to revise the regulation to confirm that getting data of the smallholders would be more effective and accurate,” he said in the event that Persatuan Organisasi Petani Sawit Indonesia (POPSI) conducted with the support of Palm Oil Plantation Fund Management Agency (PFMA) by the late of 2023.

Rizal continued that smallholders’ data process involved series of activity, such as, socialization in plantation level, escalating capacity of data team, data verification and validation. Besides, it is also important to consider the 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. These would spend much too.

The other things were the 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 mentioned that palm oil profit sharing in Jambi Province in 2024 should cover these goals by delivering fund to publish 7 ISPO certificates and 2.500 cultivation documents in the province. The program should also involve social guarantee for 420 labors in smallholders’ plantations in 21 institutions in 7 regencies 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.

Source: Majalah InfoSAWIT, April 2024