Hope for the Welfare of Planters from Rejuvenation of People's Palm Oil

Name: Hope for the Welfare of Planters from Rejuvenation of People's Palm Oil
Uploaded: 2024-04-30T07:15:03Z
Duration: 20 min 32 s
Description: The smallholder oil palm rejuvenation program has the potential to have a positive impact on farmers' welfare.

The smallholder oil palm rejuvenation program has the potential to have a positive impact on farmers' welfare.

This article has been translated using AI. See Original .

JUMARTO YULIANUS

· 5 minutes read

The palm oil plantation industry plays an important role in the Indonesian economy. This industry is a source of foreign exchange income and is the main source of income for around 17 million farming families and employees. The hope for the welfare of planters extends widely through the community's palm oil rejuvenation program.

Sakino, the Head of the Gajah Mada Village Unit Cooperative (KUD) in Telagasari Village, stepped forward and went up to the stage on Wednesday (24/4/2024). She became the first person invited by the host to give a speech.

That day, the kick off was being carried out for the first planting of the community oil palm rejuvenation (PSR) partnership program under the guidance of the Indonesian Palm Oil Entrepreneurs Association (Gapki) and intercropping of upland rice in Telagasari Village, Kelumpang Hilir District, Kotabaru, South Kalimantan.

“I was a bit nervous because I had to speak in front of important people. Last night, I couldn't sleep. "I will try to use this opportunity to convey several things," said Sakino, starting his speech in the middle of an oil palm plantation in Telagasari, about 300 kilometers from Banjarmasin City.

First of all, he represented the administrators and members of the Gajah Mada KUD, numbering at least 5,300 people, to express his thanks to the Ministry of Agriculture. The same words were expressed to the provincial and district governments, Gapki, Palm Oil Plantation Fund Management Agency (BPDPKS), and PT Tapian Nadenggan. All parties play a role in collaborating to realize a pro-people PSR program.

"We are happy here because of palm oil. "With a pro-people PSR or replanting program, it will improve the lives of the people here," he said.

According to Sakino, a member of the Gajah Mada Cooperative is spread across 13 villages in three sub-districts in Kotabaru. The total area of oil palm plantations owned by the cooperative members reached 7,200 hectares (ha). Currently, the Gajah Mada Cooperative is participating in the PSR partnership program as a foster partner of PT Tapian Nadenggan, part of the Sinar Mas Group.

"For the PSR program, we are assisted with financing of Rp 30 million per hectare. Hopefully, this subsidy can be increased to Rp 60 million per hectare so that communities involved in palm oil cultivation can become more prosperous," he said.

Also read: Palm Oil's Winding Path from Pan to Gold

Director of Fundraising at BPDPKS, Sunari, stated that as of April 2024, they have disbursed funds for PSR program spending amounting to IDR 9.3 trillion. The PSR program is channeled through two channels, namely the official and partnership channels.

"The distribution of the PSR program through partnership channels is increasingly realized. "This is in order to encourage the acceleration of PSR," said Sunari.

He said that the PSR program, a partnership between the Gajah Mada Farmers' Group and PT Tapian Nadenggan, was realized on a 720.6 ha area of smallholder oil palm plantations, involving 347 farmers.

"Through this activity, it is hoped that it will provide additional income and improve the welfare of planters," he said.

If there are no changes, according to Sunari, starting from May 1st, 2024, a new regulation will be implemented that will make it easier for companies and farmers to access the PSR program funds. The program funds will also double, from IDR 30 million to IDR 60 million per hectare, with a maximum of four hectares per individual.

According to the Director of Palm Oil and Various Palm Crops, Directorate General of Plantations at the Ministry of Agriculture, Ardi Praptono, the PSR program is the government's effort to increase the productivity and quality of palm oil. This is done by replacing unproductive plants with quality seeds and implementing good agricultural practices (GAP).

Since 2017, the Directorate General of Plantations has issued technical recommendations covering an area of 337,647 ha for 150,770 planters. Specifically in South Kalimantan, technical recommendations covering an area of 5,989 ha have been issued for 3,089 planters. This achievement still needs to be continuously pushed so that the consistency of meeting raw material production is maintained and sustainable.

"Plantation farmers play a crucial role in the palm oil plantation industry. Currently, at least 42 percent of the total area of palm oil plantations in Indonesia belongs to small-scale farmers," he said.

Main program

Gapki General Chair Eddy Martono said that the partnership pathway PSR program was one of the main programs. This program is to help farmers rejuvenate old, damaged and unproductive oil palm plants. All this is done at the same time to increase productivity and production of palm oil nationally.

"In the last five years, palm oil production nationwide has been relatively stagnant, while domestic consumption continues to increase. Whether we like it or not, we have to increase productivity from existing plantations because now opening new land is no longer allowed," he said.

Currently, the plasma fields of community-based core plantation (PIR) and self-sufficient farmers have entered the rejuvenation phase. This is because some of the palm oil plantations were established in the 1980s. Since 2017, the government, supported by BPDPKS funds, has developed the PSR program.

"The total amount of land proposed by farmers or gardeners who have passed and partnered with the program PSR with the company today exceeds 52,000 ha, involving more than 150 farming institutions and thousands of farmers," he said.

The PSR program in Kotabaru this time is also integrated with upland rice. Rice is planted in between oil palm plants. This aims to increase farmers' production and income, while also playing a role in providing food for the local community.

Out of the 52,000 hectares, around 1,800 hectares were obtained through partnership routes, which involved five member companies of Gapki: PT Perkebunan Nusantara (PTPN) III, PTPN VI, PT Buana Wiralestari Mas, PT Ivomas Tunggal, and PT Tapian Nadenggan. Three of these companies are a part of the Sinar Mas Group.

"The PSR program in Kotabaru is now integrated with upland rice cultivation. Rice is planted in between oil palm plants. This aims to increase farmers' production and income, as well as provide food for the local community," he said.

Kotabaru Regent Sayed Jafar Alaydrus mentioned in a speech delivered by Economic Advisor to Kotabaru regency Johanuddin that the potential area for cultivating upland rice in Kotabaru is 1,912 hectares. The proposed planting of upland rice by several farmer cooperative groups (gapoktan) for this year's rice planting season is 46.5 hectares.

"Our target for the PSR program in official paths in 2024 is 300 hectares, spread across six farming groups. We hope that the PSR program, combined with intercropping of upland rice, can improve the welfare of farmers and fulfill the basic food needs of the community," he said.

Also read: So that you are agile and don't have any overlap in managing the palm oil industry

Governor of South Kalimantan, Sahbirin Noor, in a speech delivered by the Economic and Development Expert Staff of Kalsel Provincial Government, Agus Dyan Nur, stated that South Kalimantan is one of the national food buffer regions. Various efforts, innovations, and collaborations need to be made to develop and achieve food security.

Based on the Plantation Statistics Data of 2023, South Kalimantan has a total area of oil palm plantations covering 443,802 hectares that are being operated by 89 large private and state-owned plantation companies. Approximately 24 percent of it, or 107,582 hectares, is managed by smallholder plantations.

"The government supports and encourages the utilization and optimization of palm oil plantation land for food crops, such as upland rice and other suitable food crops that match the characteristics of palm oil plantation land in a certain region," he said.

The PSR program with intercropping of upland rice can be a momentum to achieve sustainable palm oil while also maintaining food security. The large potential of palm plantations in Indonesia should be optimized as much as possible for the welfare of the people.

Also read: Palm oil is relied on for the economy

Editor:

CORNELIUS HELMY HERLAMBANG

Hope for the Welfare of Planters from Rejuvenation of People's Palm Oil

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