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Smallholders: Fund from PFMA is Mostly for Stakeholders



fot by Diyon Nofri/SawitFest 2021
Smallholders: Fund from PFMA is Mostly for Stakeholders

InfoSAWIT, JAKARTA - Smallholders joining in Serikat Petani Kelapa Sawit (SPKS) thought, Palm oil Plantation Fund Management Agency (PFMA) still focuses to stakeholders and ignores smallholders.  It does not contribute to accelerate Indonesian Sustainable Palm Oil (ISPO) certification for smallholders just like President Joko Widodo mandated.

This is known from “end – year note of 2021 that PFMA delivered on Tuesday (28/12/2021). PFMA, since it was established in 2015 until now, gathered about Rp 137,283 billion.

The numbers have been distributed to many programs mandated in PFMA, for example, Rp 110,05 billion (80,16%) to subsidize palm oil biodiesel program.

Rp  6,59 billion (4,8%) to conduct smallholders replanting program; Rp 389,3 billion to research and development; Rp 199,01 billion to human reseource development; Rp  21,1 billion to infrastructures in 2021 and Rp 318,5 billion to palm oil promotion, advocacy and partnership.

General Secretary of SPKS, Mansuetus Darto though, by the numbers, PFMA, one thing for sure, does not realize the mandate of President Joko Widodo because it was established to support sustainable palm oil development in Indonesia. “What PFMA did is not qualified for smallholders,” he said, as in the official statement to InfoSAWIT, Thursday (30/12/2021).

He continued, the fund that PFMA gathered reaching Rp 137,283 billion was from smallholders too. “What we understand is that the expensive crude palm oil (CPO) price decreases fresh fruit bunch (FFB) price produced by smallholders about Rp 400 per kilogram. It means, the fund should be allocated more to smallholders’ needs,” he said.

He also mentioned, biodiesel incentives to many stakeholders in 2015-2021 reaching Rp 110,05 billion or 80,16% from the total fund do not deliver positive impacts to smallholders directly because the stakeholders getting the fund do not run partnership with independent smallholders.

“In fact, smallholders should sell their production to middlemen by getting disadvantage about 30% from what the government decided. In the same time, PFMA and the government have no mechanism to order stakeholders getting biodiesel subsidy to empower smallholders and develop partnership,” Darto said.

That is why, it needs to oblige the companies getting biodiesel subsidy to run partnership with independent smallholders directly. (T2)