COORDINATING MINISTRY FOR ECONOMIC AFFAIRS

REPUBLIC OF INDONESIA

PRESS RELEASE
HM.4.6/88/SET.M.EKON.3/2/2022

The Government Accelerates the Implementation of the People's Palm Oil Replanting Program by Implementing Good Agriculture Practice through Multi-stakeholder Strategic Cooperation

Siak Regency, February 24^th, 2022

The national palm oil industry is recorded to have contributed to the national GDP by 3.5% and played a role in alleviating poverty and creating jobs for more than 16 million workers.

Given the importance of oil palm for the national economy, the Government continues to accelerate the realization of the People's Palm Oil Replanting (PSR) program or replanting with various policies, one of which is by encouraging the form of multi-stakeholders strategic cooperation.

The PSR Program is one of the National Strategic Programs as part of the Government's effort to increase the productivity of the national oil palm plantations, which currently averages 3-4 tons/hectare and the age of the plant is over 25 years.

The implementation of the PSR program with the use of superior seeds and the application of Good Agriculture Practice (GAP) will increase oil palm production without having to clear new land, so as to increase the income of smallholders optimally.

The PSR program is targeted for 2020-2022 for an area of ​​540 thousand hectares and is supported by financing from the Palm Oil Plantation Fund Management Agency (BPDP-KS) of Rp30 million per hectare for a maximum of 4 hectares per planter.

“The PSR program that we are carrying out today is our effort to realize the target and the sustainability of the program. It is hoped that the planting in other people's gardens will continue,” said Coordinating Minister for Economic Affairs Airlangga Hartarto in his remarks at the Inaugural Planting of the Strategic Partnership Palm Oil Replanting Program with the theme “Strategic Partnership Spirit for Acceleration of People's Palm Oil Programs” which took place in Kandis District, Siak Regency, Thursday (24/02).

The partnership provisions that have been designed in addition to accelerating the implementation of PSR, also aim to ensure that the quality of smallholder oil palm plantations will grow with the same quality as the quality of the plantations of the partner companies. “Partner companies are expected to be responsible for helping smallholders build their oil palm plantations with at least the same quality as their partner plantations or even better by utilizing the latest technology and ensuring sustainability aspects from an economic, social and environmental perspective,” explained Coordinating Minister Airlangga.

Meanwhile, in terms of financing, the Government also provides support for People's Business Credit (KUR) with subsidized interest and a grace period of 5 years. With this support, the planters pay installments after their oil palm plantations have matured. Coordinating Minister Airlangga also symbolically handed over KUR from various channeling banks such as BNI, BRI, BPD Riau, Bank Syariah Indonesia, and Bank Sinarmas Syariah.

In this activity, replanting was carried out for oil palm plantations owned by 1,233 independent smallholders with a total land area of ​​2,844 hectares spread over 16 villages. This partnership scheme involves Sinar Mas Agribusiness and Food as the core company with 16,361 plasma farmers. The type of seed used is DXP Dami Mas with a productivity of 25-30 tons FFB/ha. Specifically in 2022, Sinar Mas Agribusiness and Food targets 1,300 hectares of independent smallholder land.

The initial planting of PSR through this strategic partnership was also followed by the signing of a cooperation or MoU for the Acceleration of PSR between Sinarmas Corp. and the 3 Gapoktan Pandan Jaya parties, the inauguration of the Central Executive Board of My Palm My Future (DPP SAMADE), and the signing of the MoU between SAMADE and BPDP-KS.

On this occasion, a symbolic handover of the palm stick machine through PT Karunia Prima Nastari's CSR was also carried out to the Village Unit Cooperative and the SAMADE Association. For information, palm sticks are additional downstream products and have the potential to be processed into handicraft products that can be exported. In addition to protecting the environment by reducing waste, it can also increase the income of oil palm farmers.

Also attending the event were the Deputy Minister of Trade, Members of the Indonesian Parliament, Governor of Riau Province, Deputy for Food and Agribusiness Coordination at the Coordinating Ministry for the Economy, Regent of Siak Regency, Representative of BPDP-KS, Director of Sinarmas Agro Resources and Technology, Director of Bank Rakyat Indonesia, and Chairman General Association of SAMADE. (ag/rep/map/fsr)

***

Bureau of Communications, Information Services, and Meetings
Coordinating Ministry for Economic Affairs of the Republic of Indonesia
Haryo Limanseto

Website: www.ekon.go.id
Twitter, Instagram, Facebook, TikTok & Youtube: @PerekonomianRI
Email: humas@ekon.go.id
LinkedIn: Coordinating Ministry for Economic Affairs of the Republic of Indonesia