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PTPN III Launches Innovative Palm Oil Replanting Program with Upland Rice Intercropping



Doc. Special/PTPN III President Director, Mohammad Abdul Ghani, noted that out of Indonesia’s 16.38 million hectares of palm oil plantations, around 6.94 million hectares (42%) are owned by smallholde
PTPN III Launches Innovative Palm Oil Replanting Program with Upland Rice Intercropping

InfoSAWIT, JAKARTA – Holding company PT Perkebunan Nusantara III (Persero), through its subsidiary PT Perkebunan Nusantara IV (PalmCo), has introduced an innovative Smallholder Palm Oil Replanting Program (PSR) using an intercropping system with upland rice. The initiative aims to bolster national food security while enhancing land productivity.

PTPN III President Director, Mohammad Abdul Ghani, noted that out of Indonesia’s 16.38 million hectares of palm oil plantations, around 6.94 million hectares (42%) are owned by smallholders. "Currently, approximately 2.8 million hectares of smallholder palm oil plantations are over 25 years old and urgently need replanting," he explained in a written statement, quoted by InfoSAWIT on Thursday (28/11/2024).

During replanting, land often becomes unproductive for over two years until new palm trees start yielding. To address this, PTPN collaborated with the Ministry of Agriculture, the Directorate General of Plantations, and other stakeholders to implement an intercropping program using upland rice in PSR areas.

“Intercropping allows upland rice to be planted between palm trees during the first two years when the palms are still in their non-productive phase. This could be a potential solution to support the national food self-sufficiency program outlined by the President,” said Abdul Ghani.

The pilot phase of this program will be carried out in Siak Regency, Riau, on 60 hectares of replanting land owned by plasma farmers from the Karya Maju Producers Cooperative. Of this total, 20 hectares will be allocated for upland rice cultivation.

"Upland rice does not require special irrigation, making it ideal for palm oil plantations undergoing replanting," explained PalmCo Director, Jatmiko Santosa.

By 2029, PTPN IV aims to implement upland rice intercropping on thousands of hectares of PSR land annually. Jatmiko emphasized that this program could create productive land without the need for additional land clearing.

The program is supported by research from Bogor Agricultural University (IPB) and PT Riset Perkebunan Nusantara. IPB Rector, Prof. Arif Satria, highlighted that utilizing PSR land for upland rice could yield an additional 1.1 million tons of rice annually from 470,000 hectares.

“Collaboration between PTPN, IPB, and other stakeholders ensures intercropping can be a tangible solution for enhancing food security while maximizing palm oil land efficiency,” said Arif.

Jatmiko added that the program’s success hinges on support from various entities, including the Ministry of Agriculture, the Palm Oil Plantation Fund Management Agency (BPDPKS), local governments, fertilizer producers, financial institutions, and farmer organizations.

“This program represents a significant innovation for the plantation and agricultural sectors. We hope its impact will not only support food self-sufficiency but also improve farmer welfare,” he concluded. (T2)

 

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