InfoSAWIT, JAKARTA – The People's Palm Oil Rejuvenation (PSR) program initiated by the government is again facing big challenges in its realization. The Main Director of the Plantation Fund Management Agency (BPDP), Eddy Abdurrachman, reported that last year, the realization of this program only reached 38.24 hectares (ha), far from the annual target of 120 thousand ha.
"In 2024, realization will be even lower, only 34.24 ha with total funds disbursed reaching IDR 1.29 trillion," said Eddy in a joint Working Meeting with Commission XI DPR RI, monitored InfoSAWIT, Monday (17/2/2025).
Eddy explained that there were a number of obstacles that caused the low achievements of the PSR program. One of the main factors is the difficulty for growers to fulfill administrative requirements. Many of them have difficulty proving that their land is free from forest area status or Business Use Rights (HGU), which is the main requirement for receiving rejuvenation assistance.
Apart from that, the high price of palm oil fresh fruit bunches (FFB) also has an impact on the low interest of growers in participating in the PSR program. According to Eddy, for some planters, their oil palm plantations are the only source of income. With high FFB prices, they prefer to maintain existing trees rather than replace them with new plants that will take years to become productive again.
Another challenge comes from partnership programs between growers and companies which are considered not to be running optimally. In fact, it is hoped that this partnership scheme can be a solution to increase farmer participation in the PSR program.
To overcome these various obstacles, BPDP has coordinated with the Ministry of Agriculture (Kementan) to simplify regulations related to PSR. Apart from that, BPDP also continues to intensify outreach and assistance for planters so that they can fulfill administrative requirements more easily.
"Finally, we also continue to coordinate with plantation companies to increase their commitment to implementing PSR through partnership channels," concluded Eddy.
Even though it still faces various challenges, the government's efforts to encourage the PSR program continue to increase the productivity of smallholder oil palm plantations and the sustainability of the national palm oil industry. (T2)
