InfoSAWIT, MEDAN – The Indonesian government has emphasized the crucial role of farmers participating in the Palm Oil Revitalization Program (PSR) in increasing the supply of crude palm oil (CPO) to support the development of B-50 biodiesel. The program is expected to require an additional 6.6 million tons of CPO to achieve the target of increasing the biodiesel blend from B-40 to B-50.
In line with the energy self-sufficiency mission under President Prabowo Subianto’s administration, plant-based energy from palm oil presents a golden opportunity for palm oil farmers to enhance the economic value of their plantations. The PSR program aims to boost the quality and productivity of smallholder palm oil farms, which currently produce at about 40% of the output level of large corporate plantations.
Heru Triwidarto, Director General of Plantations at the Ministry of Agriculture, explained that the PSR plays a vital role in improving the livelihoods of farmers by increasing the quality and productivity of palm oil harvests. "The government encourages large companies, state-owned enterprises (SOEs), and farmers to work together to increase production to achieve energy and food self-sufficiency," he stated at the Spotlight of Indonesia Palm Oil Issues (SIOP) 2024 event in Medan, as quoted in a press release received by InfoSAWIT on Friday (15/11/2024).
Heru added that if additional land is required to meet biodiesel needs, at least 2.3 million hectares of new land would be necessary.
The SIOP 2024 event was organized by the Indonesian Palm Oil Entrepreneurs Association (GAPKI) North Sumatra and Bisnis Indonesia newspaper, with support from the Palm Oil Plantation Fund Management Agency (BPDPKS), which also initiated the PSR program to accelerate palm oil replanting in Indonesia. Achmad Maulizal, Head of the BPDPKS Corporate Division, explained that from 2016 to 2024, the PSR program has covered 251,637 hectares across 21 provinces, benefiting over 154,000 palm oil farmers.
Achmad noted that the program would continue to expand to improve the welfare of farmers. "We are committed to supporting the well-being of palm oil farmers through this program," he said.
Meanwhile, GAPKI Chairman Eddy Martono expressed full support from the private sector in helping implement the PSR. GAPKI, he said, is coordinating with the Director General of Plantations and BPDPKS to address various field challenges, from documentation issues to technical processes such as map creation and administrative documentation.
However, Eddy highlighted the substantial costs required to implement the PSR. According to GAPKI’s calculations, the replanting cost per hectare ranges from IDR 100.54 million to IDR 112.42 million. Although the government has increased PSR funding assistance from IDR 30 million to IDR 60 million per hectare, GAPKI proposed that additional funding could be sourced from BPDPKS and loans to make the program more effective.
With government support and collaboration from the private sector, the PSR program is expected to provide maximum benefits for palm oil farmers and contribute to achieving national energy self-sufficiency. (T1)
