In the recent days, the government announced the significant change in plantation fund management. Palm Oil Plantation Fund Management Agency (PO PFMA) would be substituted to be Plantation Fund Management Agency (PFMA) and would deal with not only palm oil but also the other commodities, such as, cocoa, rubber, and coffee. The decision raised contradiction both from the stakeholders and smallholders.

In a coordination meeting with Ministry of Trade, the government emphasized it would be significant to diversify the focus in PFMA to encourage plantation industries nationally. The substitution would be about to increase plantation productivity to chase the success in palm oil industries that dominated for all these years.

But the substitution also raised controversy. Based on the available regulations, public service obligation that should be established, was Plantation Fund Management Agency as the Laws Number 39 / 2014 about Plantation and the Government’s Regulation Number 24 / 2015.

Meanwhile, PO PFMA was established based on special president’s regulation that manage fund for palm oil. It is afraid, the substitution would break the available regulations, particularly the President’s Regulation Number 61 / 2015 that regulated the fund would be used for sustainable palm oil development.

Not only that, the smallholders now get complicated. They worried the fund that should be allocated for smallholders replanting program (SRP) would be handed over for other commodities. In fact, they are difficult to get the fund access.

That is why it needs to focus on palm oil in the first place namely to realize SRP targets maximally. Some smallholders encouraged the additional tasks of PO PFMA in cocoa, rubber, and coffee, should be postponed until SRP targets get optimal. To know more about the issue, dear readers should read in Majalah InfoSAWIT August 2024.