InfoSAWIT, JAKARTA – Partnerships between businesses and smallholders are pivotal for advancing oil palm development and the Smallholder Palm Oil Replanting Program (PSR). Despite an increased grant of IDR 60 million per hectare for PSR, partnership issues persist and require urgent solutions.
The government, through the Coordinating Ministry for Economic Affairs and the Palm Oil Fund Management Agency (BPDPKS), announced the funding increase from IDR 30 million to IDR 60 million per hectare. This change, effective from September 1, 2024, is aimed at accelerating replanting efforts, particularly for smallholder farmers.
“This additional funding is expected to cover replanting needs up to stage P3 or the final stage,” said Ardi Praptono, Director of Oil Palm and Other Palms at the Ministry of Agriculture. Previously, the IDR 30 million grant only sufficed for the initial stages (P0).
The PSR program focuses on replacing unproductive palm trees with high-yield varieties, which are expected to start producing in the third year after planting. During this period, farmers are encouraged to prepare their plantations for optimal future yields.
The government aims to enable farmers to modernize their plantations more effectively, from land preparation to planting superior seedlings. However, Ardi stresses the need for proper monitoring and precise allocation of funds, accompanied by farmer training and access to modern technologies to maximize outcomes.
The increase in PSR funding is a promising step, but addressing partnership challenges remains key to fostering a thriving and sustainable palm oil sector in Indonesia. (T2)
