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Delay in PSR Fund Disbursement, Infrastructure, and Scholarships? Here’s the Explanation



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Delay in PSR Fund Disbursement, Infrastructure, and Scholarships? Here’s the Explanation

InfoSAWIT, JAKARTA – As the Palm Oil Plantation Fund Management Agency (BPDP) prepares to operate on January 18, 2025, mixed information regarding the disbursement of the People's Palm Oil Rejuvenation Fund (PSR) has garnered widespread attention. According to Presidential Regulation No. 132 of 2024, BPDP is set to manage funds for three commodities: palm oil, cocoa, and coconut. However, concerns from palm oil farmers regarding the suspension of PSR fund disbursement have been clarified by Normansyah Hidayat Syahrudin, Ph.D., Director of Fund Collection at BPDP-KS.

Normansyah emphasized that the disbursement of PSR funds is only temporarily delayed, not halted, to adjust to the new Organizational Structure and Work Procedures (SOTK). "This delay is precautionary while we adjust to the new SOTK. There is no cessation," Normansyah stated via phone on Thursday night (January 16).

The delay was announced through circular letter number S-246/DPKS.3/2025 dated January 14, 2025. The letter instructed that documents for the disbursement and return of PSR funds and Palm Oil Plantation Infrastructure (SPPKS) must be submitted by January 15, 2025, at the latest. After that, the disbursement process will resume once the SOTK adjustments are complete.

Dr. Gulat ME Manurung, C.IMA, Chairman of the Indonesian Palm Oil Farmers Association (APKASINDO), urged farmers to remain calm. "We understand the farmers' concerns, but let’s be patient. We have also expressed our objections to the relevant ministries regarding this change, although we have not received adequate responses," Gulat stated in an official statement received by InfoSAWIT on Friday (January 17, 2025).

Gulat outlined three main points of objection from APKASINDO. First, palm oil funds should be fully utilized for palm oil interests, not divided among cocoa and coconut. "These funds come from export levies that ultimately burden the price of farmers' FFB," he stressed. Second, the implementation of Presidential Regulation 132/2024 is considered ambiguous due to changes in the ministry structure under the Red and White Cabinet. Third, the absorption of BPDP-KS funds for palm oil farmers has not been optimal, only reaching 20-50% each year.

Nevertheless, Gulat urged beneficiaries of palm oil funds, including students receiving palm oil human resource scholarships, not to panic. "Director Normansyah has provided a very clear explanation. We will continue to monitor this process for the common good," he concluded.

The transition of BPDP-KS to BPDP indeed presents new challenges but is also expected to be a starting point for more inclusive plantation fund management. (T2)


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