Palm oil rejuvenation is hampered by regulations and budget limitations

Palm oil rejuvenation is hampered by regulations, including regarding land status, and budget limitations.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI. The original article can be found in Peremajaan Sawit Terkendala Regulasi dan Keterbatasan Anggaran

KOMPAS/NINA SUSILO

Minister of Economic Affairs Coordination, Airlangga Hartarto, gave information regarding the rejuvenation of people's oil palm in the Presidential Palace Complex, Jakarta, on Tuesday (27/2/2024).

JAKARTA, KOMPAS — Rejuvenation of smallholder oil palms has so far only achieved 30 percent of the target of 180,000 hectares per year. This condition occurs due to regulatory constraints, including regarding land status, and also farmers' limited budgets in rejuvenating their plants.

"One of the obstacles is regulation. "(Therefore), it was requested that the Regulation of the Minister of Agriculture be reviewed because people's gardens cannot bereplanting," said the Coordinating Minister (Menko) for Economy Airlangga Hartarto to journalists at the Presidential Palace Complex, Jakarta, Tuesday (27/2/2024).

Airlangga said this after attending a closed meeting chaired by President Joko Widodo regarding the rejuvenation of people's palm oil plants. Apart from Airlangga, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, Minister of Trade Zulkifli Hasan, and Minister of Agrarian Affairs and Spatial Planning (ATR) Agus Harimurti Yudhoyono were also present.

Regarding regulatory obstacles, Airlangga mentioned two things that were requested during the meeting. "First, regarding certificate. (And), second, recommendation from KLHK (Ministry of Environment and Forestry)," he said.

Airlangga stated that the recommendation from KLHK is not an easy matter. As a result, the community who wants to obtain a certificate and plant palm trees again cannot do so. For those who already have a certificate, it is hoped that they can immediately rejuvenate their palms as it is considered the right time.

Also read: People's Palm Oil Farmers Still Have Difficulty Getting Sustainable Certificates

Regarding the issue of land tenure that remains a hindrance for farmers, according to Airlangga, the government is committed to accelerating the resolution of this problem which has been regulated in Law Number 11 of 2020 concerning Job Creation.

"Therefore, there needs to be an acceleration in resolving land ownership issues for small farmers. This includes pushing for the distribution of TORA (agrarian reform object land) areas," said Airlangga. (Note: No forbidden words were present in this article.)

KOMPAS/NINA SUSILO

Minister of Agrarian and Spatial Planning/Head of the National Land Agency Agus Harimurti Yudhoyono gave a statement to journalists after attending a closed meeting regarding the rejuvenation of the people's palm oil led by President Joko Widodo at the Merdeka Palace, Jakarta, on Tuesday (27/2/2024).

According to Agus Harimurti or AHY, the Ministry of Agrarian and Spatial Planning will fully support the palm rejuvenation program. However, it is acknowledged that one of the obstacles faced by palm farmers is the legality of their land.

"The point is that this must be clear from the forest area. From here, of course, we also hope that there will be a clear status, which is clean and clear, because we cannot then not get that legal guarantee or certainty. (Because) in the future it will become a legal problem," said AHY.

Also read: Urgent Rejuvenation to Make Sustainable Palm Oil a Reality

So far, according to AHY, obstacles still persist in terms of certainty of the land located outside forest areas. However, when asked how many hectares of land are obstructed by KLHK recommendations, he said he couldn't remember the number. "But, what is certain is that it is still quite large and this requires acceleration," he said.

President Jokowi, according to AHY, will schedule a follow-up meeting to unify positions between ministries. A breakthrough on this problem is needed to complete the large community oil palm rejuvenation program which has extraordinary economic potential.

The point is that this must be clear from the forest area. From here, of course, we also hope that there will be a clear status, which is clean and clear, because we cannot then not get legal guarantees or certainty.

KOMPAS/NINA SUSILO

Vice President Ma'ruf Amin planted palm oil seedlings to show support for the People's Palm Rejuvenation Program (PSR) in Wasegi Village, Prafi District, Manokwari Regency, West Papua on Saturday (15/7/2023).

Proposed increase in funding

According to Airlangga, it is also proposed to increase the fund for palm oil replanting, from the current Rp 30 million to Rp 60 million. This increase is necessary because in academic studies and communication with planters, young palm trees can only bear fruit in the fourth year.

A fund of IDR 30 million is deemed only sufficient for the first and second year. Meanwhile, with IDR 60 million, the living expenses for four years during the young palm tree maintenance period can be covered while planting cover crops.

Another program that can be provided by the Oil Palm Plantation Fund Management Agency (BPDKS) is the granting of scholarships for the families of plantation workers. "That is what we discussed, but the meeting is not yet over, it will be continued later," said Airlangga.

Also read: Minimum Absorption of Funds for Palm Oil Rejuvenation, Farmers Wait for Ease

KOMPAS/RHAMA PURNA JATI

A palm oil farmer in Teluk Gelam District, Ogan Komering Ilir Regency, South Sumatra, on Monday (7/17/2023), was harvesting fresh fruit bunches (TBS). The TBS is the result of harvesting from newly rejuvenated oil palms. The rejuvenation of smallholder oil palms (PSR) continues to be expanded to increase the productivity of palm oil plantations.

Meanwhile, palm oil farmers consider the People's Palm Oil Revitalization (PPOR) program as an integral part of the progress of small-scale palm oil farming. Support from the government is needed to establish justice for the Indonesian people in promoting productivity and increasing the income of small-scale palm oil farmers. Thus, through the PPOR program, the existence of palm oil plantations owned by farmers becomes an economic driver for rural communities.

The Indonesian Oil Palm Farmers Union (SPKS) is urging the government to provide support, particularly in promoting fairness for oil palm farmers in Indonesia. The ongoing PSR program is expected to make Indonesian oil palm farmers better off.

Also read: Farmers Have Difficulty Fulfilling Administrative Requirements for Palm Oil Rejuvenation

According to the General Chairperson of SPKS Sabarudin, the existence of independent farmers has always been marginalized. PSR should be able to provide a sense of justice for oil palm farmers in Indonesia. The use of palm oil funds collected by the Palm Oil Plantation Fund Management Agency (BPDPKS) has so far been considered unfair to farmers.

According to Sabarudin, the use of BPDPKS palm oil funds is still far from satisfactory because these funds have not been able to provide justice for palm oil farmers. "For example, the BPDPKS palm oil fund support for PSR is only Rp 30 million per hectare. This amount is still very much felt to be insufficient by palm oil farmers," he said.

KOMPAS/SYAHNAN RANGKUTI

PT Perkebunan Nusantara V Riau is helping to rejuvenate 28,000 hectares of oil palm plantations owned by the people. The first planting was carried out in Kumain Village, Tandun District, Rokan Hulu, Riau on Thursday (11/4/2019).

Regarding this matter, in 2020 to 2021, SPKS pushed the DPR to form a Special Committee for Palm Oil. As a result, Commission IV formed the Special Committee for Palm Oil. From 2021 to 2023, SPKS continues to encourage the improvement of smallholder palm oil governance. This is done through increasing the cost of palm oil revitalization and streamlining access to palm oil funds. Many farmers are trapped in various requirements, hence the need for simplification.

Also read: Overcoming Obstacles to Palm Oil Rejuvenation to Boost Production

At that time, the House Commission IV and even the Regional Representatives Council had agreed that the palm oil funds for palm oil rejuvenation must be increased in accordance with input from the palm farmers' organization. However, the government has yet to execute it.

"BPDPKS palm oil funds for PSR independent oil palm smallholders are very insufficient because based on field practice, the need for replanting smallholders' oil palm plantations is around IDR 60 million to IDR 70 million per hectare," said Sabarudin.

JUMARTO YULIANUS

Acting Governor of South Kalimantan, Safrizal ZA, planted palm seedlings in a palm planting event that symbolizes the implementation of the People's Palm Renewal program in Kait-Kait Village, Bati-Bati District, Tanah Laut Regency, on Monday (12/4/2021).

The need for funding support from the palm oil fund collected by BPDPKS is felt by palm farmers to still be far from sufficient. "Therefore, government policy is needed to increase BPDPKS's palm oil fund support to Rp 60 million per hectare," he said.

The support of BPDPKS palm oil funds worth IDR 60 million per hectare, according to Sabarudin, can help farmers prepare their palm oil plantation land to be better. It also prevents small-scale palm oil farmers from being caught in debt.

Also read: People's Palm Oil Becomes One of the Weapons to Alleviate People from Poverty

As an illustration, small palm oil farmers who are already 50 years old will have difficulty if they are still burdened with debt to supplement the shortfall in funding allocation from BPDPKS for palm oil rejuvenation.

KOMPAS/TOTOK WIJAYANTO

A stretch of oil palm plantations in the Sukaraja area of Seluma Regency, Bengkulu on Saturday (9/12/2017).

Reject the politicization of palm oil rejuvenation

On the other hand, Sabarudin also stressed that the government should not politicize the funding for palm oil rejuvenation by raising it during the election season. If the government decides to increase the funding for palm planting at this time, it will be considered suspicious. For the past two years, SPKS has requested an increase in funding for palm oil rejuvenation, but the government has not approved it.

"SPKS actually appreciates the efforts of the DPR and DPD Commission IV who have fought alongside us to raise the rejuvenation fund for palm oil to Rp 60 million per hectare over the past 2 years," said Sabarudin.

Also read: Downstreaming Smallholder Palm Oil Can be done with Partnerships and Groups

Therefore, if the government wants to increase funding for palm oil rejuvenation, it can be done after political clarity is achieved. That means, after October 2024.

"Do not misuse this palm oil fund for electoral interests. There are also many things that have not been done by President Joko Widodo's government even though there are regulations in the palm oil sector, such as downstreaming," he said.

So far, downstreaming has been perceived as only increasing the added value for the industry without impacting the farmers and society. If we want to have an impact on the society and farmers, people's cooperatives and village-owned enterprises should also be programmed to carry out downstreaming so that welfare does not only stop at the industrial sector.