Rubber farmers in Batanghari Regency of Jambi converted their plantations into oil palm in collaboration with PT Perkebunan Nusantara (PTPN) VI. The Memorandum of Understanding (MoU) was signed to coincide with the commemoration of Indonesian Independence Day, 17 August 2018.
Under the agreement, the land owned by plasma farmers ex Pirsus 1 Durian Luncuk was handed over to PTPN VI to be converted into palm oil plantations through a partnership scheme (one management scheme). This partnership won’t last until the time comes to second replanting. This conversion process will be financed by bank credit scheme.
The MoU signing was represented by Oil Palm Cooperative Tia Karya Bersama in Guruh Baru Village, Sarolangun Sub-district and Terentang Jaya Farmers Cooperative in Terentang Baru Village, Batanghari Sub-district.
`Replanting rubber into palm oil is expected to benefit farmers in Jambi. This is a form of implementation of our economic constitution, marked with the partnership between businesspeople with cooperative. This is also a form of implementation of people-oriented economic system,” local legislature Ihsan Yunus said. (source: Jamberita)