Govt Makes Procedures Easier to Replant Oil Palm

REPLANTING oil plant trees under the Smallholders’ Oil Plant Plantation Replanting (PSR) scheme in Indonesia is not a difficult to carry out, since the government has made it easier, including to access funding resources. The Indonesia Oil Palm Plantation Management Agency (BPDPKS) is also ready to support funding support.

The government has shortened procedure for smallholders to join PSR as President Joko Widodo ordered officials to streamline the program, which also aims to help plantations increase productivity. Initially, there were 27 procedures to follow and it has been cut down to at least nine or ten procedures.

“For that reason, we cut down the procedures from 27 to at least nine or ten,” BPDPKS’ Fund Collection Director Herdrajat Natawijaya said as he spoke at a seminar held by Media Perkebunan in Palembang, (13/2/2019), as reported by

In the PSR program, BPDPKS disburses Rp25 million grant per hectare and the remaining fund will be financed under the microcredit scheme called Kredit Usaha Rakyat (KUR). The requirement to get the credit is also easier than before. Initially, bank requires smallholders to show their land ownership certificate. Some smallholders can’t afford it since it normally takes long time to get the certificate.

As a result, they are unable to access credit from bank. Now, bank has made it easier, only requires smallholders to prove their land is not in dispute and they can submit the certificate later on or simultaneously during the process. The government will also provide assistance to smallholders to set up all requirements.

According to Herdrajat, implementation of PSR program in 2018 had been delayed due to technical problem so that the target of replanting 185 thousand hectares of oil palm grown by smallholders couldn’t be completed. It was because of the Technical Recommendation (known as Rekomtek), which is one of main requirements, was completed by the end of the year. This year, PSR is targeted to replant 200 thousand hectares of oil palm.

At some regions, the PSR program has been carried out successfully. The program in Musi Banyuasin Regency, South Sumatera that was launched by President Joko Widodo in late 2017 has completed tree-planting phase. Musi Banyuasin Regent Dodi Reza Alex Noerdin said that Musi Banyuasin has been laboratory for replanting. It is because the regency has a lifelong commitment to implement good governance in palm oil sector. “Muba is serious to deal with palm oil because people make a living from oil palm and rubber plantation,” Dodi said. ***

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