Ministry of Cooperation and SMB Would Prepare the Regulations to Support SRP

Foto by Apriliagoverty/Sawitfest 2021
Ministry of Cooperation and SMB Would Prepare the Regulations to Support SRP

InfoSAWIT, JAKARTA – There is nothing impossible if everything is done together, namely in smallholders replanting program (SRP). It needs to implement it together for it is also about to substitute the old trees or fake trees by planting superior and certified seeds.

It was told in a webinar and live streaming about "Dampak Positif Program PSR, Sarpras & Pengembangan SDM" Seri 2, which media perkebunan conducted with the topic: ‘Dampak Pendanaan BPDPKS untuk Petani Sawit’.

Assistant Deputy of Cooperation Renew and Development, Ministry of Cooperation, Small and Medium Business (SMB), Bagus Rachman did welcome and support SRP that Palm oil Plantation Fund Management Agency (PFMA) delivers fund.

“We do support and prepared cooperation management to get fund from PFMA,” Bagus said.

He continued the supports would be about regulation to develop cooperation. For instance, Government’s Regulation Number 7 / 2021 in the fifth section is about the policy to develop cooperation in special field. Chapter 25 mentioned that the central and regional government should empower cooperation that is running certain business in, such as, maritime and fishery; trade; transportation or port; agriculture; forestry – which means, in this case, palm oil is the subsector in agriculture.

Chapter 34, article 5 mentioned that smallholder development in the form of cooperation is done by the central and regional government according to their authority. Article 6 explained, smallholders’ corporate business development in cooperation mode, as it is written in article 1, a, can be motivated by partnership with other legal institutions to empower smallholders.

Ministry of Cooperation and SMB targeted to increase modern cooperation, according to President’s Regulation Number 18 / 2020 about Medium Development Plan (2020 – 2024) would be 500 cooperation in every single year.

“Modern cooperation means that it adopts technology, is potential to get into industrial scale, has access to capital and market sources to deliver higher additional values, and big advantages for the members by prioritizing basic value and principles of the cooperation,” Bagus said.

He told that there are seven criteria of modern cooperation. The first, it connects with offtaker; the second, it adopts technology and innovation; the third, it has access to source of fund; the fourth, it has industrial scale or big production capacity; the fifth, it has synergy among those or in ecosystem – base; the sixth, it has professionality, management; and the seventh, it has members and higher additional values.

The advantages to get corporatization are there would be plantation and mill management; guarantee of supply chain and price; market guarantee, modal empowerment, competency, and welfare members (smallholders).

He did admit, there are issues to conduct SRP, such as, the smallholders do not have legal areas, their certificates may be in pawn, difficult to get vast one overlay, difficult to fulfill technical conditions and verification; their plantations are far from the mill, and they may not be in group or cooperation.

“Knowing the issues, corporatization to smallholders could be the way to solve the issues together,” Bagus said. (T2)