Banks Provide for Oil Palm Replanting Rp4 Trilion

Indonesia`s state-owned banks will provide financing as much as Rp4 trilion for oil palm replanting program. The Funding under People Business Credit Program (KUR) scheme will complete a funding from The Indonesian Oil Palm Estate Fund (BPDPKS). A total of KUR funding will be given by the State-Owned Banks, which includes Bank Mandiri, Bank BNI, and Bank BRI. “Rp4 trilion in total will be used for it (oil palm’s rejuvenation), with 7% interest,” says the Director of PT Bank Mandiri (Persero) Tbk, Alexandra Askandar at the Ministry Coordinator of Economy, Jakarta (17/5/2018). According to Alexander, Bank Mandiri has already funded the first leg of the KUR for 402 hectares, and the next step will be for the rejuvenation of the recently inaugurated 859 hectares by President Jokowi in Riau not long before. According to the Deputy of Food and Agriculture of the Coordinating Ministry of Economic Affairs, the KUR scheme will be handed to the farmers right after the 25 million Rupiah budget plan from the BPDPKS comes to realization. The fund needed for the replanting ranged from 55 million to Rp68 million. “Rp25 million has already been acquired from the BPDPKS. The rest will be paid by the KUR funds,” says Musdalifa. ***