InfoSAWIT, BOGOR – The palm oil industry in Indonesia is undergoing a transformative phase, with a renewed focus on the Rejuvenation of Smallholder Palm Oil (PSR) program. This initiative, aimed at modernizing smallholder plantations, has gained momentum through collaborative efforts between the government, industry stakeholders, and farmer organizations like the Smallholder Palm Oil Farmers Union (SPKS). A recent discussion in Bogor in January 2025 highlighted the progress and challenges of the PSR program, particularly in ensuring legal compliance and boosting productivity.
One of the key pillars of the PSR program is ensuring that smallholder farmers operate within the bounds of government regulations. Togu Rudianto Saragih, Chairman of the Cultivation Group at the Directorate General of Plantations, emphasized the importance of legal status for farmers participating in the program. He stated that independent palm oil farmers must have clear land ownership and must not cultivate palm oil in forest areas.
"Adhering to government regulations is non-negotiable. Farmers must have legal status and avoid forest areas to qualify for PSR," Togu explained during the discussion.
This focus on legal compliance is crucial, as it not only ensures the sustainability of the palm oil industry but also protects farmers from potential legal disputes. Brigadier General Ratno Kuncoro, Director of the Economic Intelligence Agency of the Indonesian National Police (Baintelkam POLRI), highlighted the police's role in assisting farmers with legal issues. He noted that Baintelkam is committed to collaborating with all stakeholders to resolve land ownership and legal status challenges.
"Legal issues can be a significant barrier for farmers. We are here to mediate and provide solutions to ensure that farmers can focus on improving their productivity," Brigadier General Kuncoro stated.
While legal compliance is essential, the success of the PSR program also hinges on improving the productivity of smallholder farmers. Currently, many independent farmers produce an average of 3 tons of palm oil per hectare annually, far below the potential yield of 6-10 tons per hectare. To address this, SPKS has been working with stakeholders to provide farmers with access to superior seeds and financial support.
Andi W. Setianto, Director of ASD Bakrie, announced the company's commitment to supplying high-quality palm seeds to farmers. "By using superior seeds, farmers can significantly increase their productivity, which will directly improve their livelihoods," he explained.
Financial support from the Palm Oil Plantation Fund Management Agency (BPDP) has also been instrumental in accelerating the PSR program. BPDP has increased its funding from 30 million IDR per hectare to 60 million IDR per hectare, providing farmers with the resources needed to replant and adopt sustainable practices.
Dwi Nuswantoro, a BPDP representative, acknowledged the challenges faced by the program but expressed optimism about its future. "We are committed to supporting farmers and ensuring that the PSR program achieves its goals. Collaboration among stakeholders is key to overcoming these challenges," he stated.
As a leading organization representing smallholder palm oil farmers, SPKS has played a pivotal role in facilitating the PSR program. SPKS Chairman Sabarudin highlighted the union's efforts to support its members in implementing best and sustainable cultivation practices. He emphasized the importance of collaboration with government agencies, private companies, and other stakeholders to address the challenges faced by farmers.
"SPKS is dedicated to supporting the PSR program and ensuring that our members benefit from it. We are grateful for the support from all parties and look forward to continued collaboration," Sabarudin stated.
Despite the progress made, Sabarudin acknowledged that challenges remain, particularly in obtaining technical recommendations (Rekomtek) from the Directorate General of Plantations. These recommendations are essential for farmers to achieve ISPO (Indonesian Sustainable Palm Oil) certification, which can open up new markets for sustainably produced palm oil.
The success of the PSR program depends on the collective efforts of all stakeholders. By addressing legal compliance and productivity challenges, Indonesia can ensure that its smallholder palm oil farmers are not only sustainable but also competitive in the global market. The recent discussions in Bogor underscore the importance of collaboration and commitment in achieving these goals.
As the palm oil industry continues to evolve, the role of smallholder farmers will remain critical. Through initiatives like the PSR program and the support of organizations like SPKS, Indonesia is paving the way for a more sustainable and prosperous future for its palm oil industry. (T2)