SRP Grant is a Relief for Smallholders

SRP Grant is a Relief for Smallholders

InfoSAWIT, JAKARTA – The fund to have smallholders replanting program (SRP) which was reaching Rp 25 million/hectare (ha) when KUD Karya Mukti, Musi Banyuasin did it, is really positive because the interest rate gets decreasing when their plantations grow in 3 – 5 years.

Chairman of KUD Karya Mukti, Bambang Gianto said that in a 2nd series webinar about the positive impacts of SRP program, infrastructure, and human resource development for Smallholders with the theme ‘Dampak Pendanaan BPDPKS untuk Petani Sawit’ which was conducted by plantation media and Palm Oil Plantation Fund Management Agency (PFMA).

By SRP grant of PFMA, the smallholders, unions got helps in sustainable fund through the banks. When the smallholders got loans to nurse the plantations, the plantations are operating and the banks were sure to deliver loans.

By the grant in sustainable fund, he continued, the smallholders got kredit usaha rakyat (KUR) within the interest rate 6%. When the grant reached Rp 25 million/ha, the interest rate would reach Rp 4,5 million/ha. Now it increases to be Rp 30 million/ha, the interest rate is Rp 6 million/ha if the plantation development would take 4 years. If the development may be late to be 5 years, the interest rate would be Rp 7,5 million/ha. The development is now reaching Rp 50 - 65 million until the trees are productive (P3).

KUD Mukti Jaya which runs replanting in the first and second step, and covers about 3.200 ha in total, now produces 2.448 ha. The interest rate reaches more than Rp 11 billion. If many regions in Indonesia do the same, the interest rate would be big in numbers and would be significantly delivering profits.

The total SRP grant in the first and second phase for KUD Karya Mukti reached Rp 61 billion. The plantations develop for about 4,5 years. Fresh fruit bunch trade from the plantations reached Rp 57 billion. “If the smallholder got his own fund and development, it would deliver massive advantage for not paying interest rate to the banks. “From six villages as the members of KUD Karya Mukti, only one village gets loans from the banks to get sustainable fund. The other five got their own,” Bambang said.

The biggest issue to face is the legal. From four unions as the formers in PIR Trans in Musi Banyuasin, 1.116 ha are categorized in forest region though many planters have got land certificate. The unions are difficult to get in touch with many instances, such as, Ministry of Environment and Forestry, to solve the issue. But for having development from the regional government, the areas are categorized as other land use and the certificate to be published is being reviewed. (T2)