Replanting is the Key to Improve Livelihood of Oil Palm Smallholders

The Indonesian Oil Palm Estate Fund (BPDPKS) reiterated its view that smallholders’ oil palm replanting program (PSR) is the solution to improve plantation productivity and the livelihood of smallholders.

For that reason, BPDPKS commits itself to support the program by disbursing palm oil fund. BPDPKS Director of Fund Collection Herdrajat Natawijaya said at a “Quo Vadis CPO Fund: Dissecting Replanting on Smallholders’ Oil Palm Plantation”-themed discussion in Bakoel Coffie, Cikini, Jakarta (13/12/2018).

He said PSR aims to improve smallholders’ plantation productivity as the trees are relatively old so that productivity is also low. These smallholders generally obtain very low yields of around 2 tons of fresh fruit bunches (FFB) per hectares, while big plantation companies can obtain 6 ton 7 tons FFB per hectare.

“We are expecting to improve smallholders’ productivity from 2 tons FFB per hectare to 6 or 7 tons per hectare,” Herdrajat said. Low productivity causes smallholders’ income remains so low that it needs big effort to increase their productivity. “BPDPKS offers solution for the problem by disbursing replanting fund to give smallholders’ chance to increase their plantation productivity,” Herdrajat added.

In this 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).

Speaking at this discussion session, Senior Advisor at Presidential Staff Office (KSP) Abetnego Tarigan, said that the government support sustainable palm oil to improve smallholders’ productivity. “We are confident smallholders’ productivity improve and their future will be better.” Mutu Certification Director Irham Budiman expressed same opinion.

He said sustainable palm oil is unseparated part of smallholder oil palm plantation. In this case, funding support from BPDPKS is deemed necessary to improve the productivity. “Smallholders must adopt sustainable practices for better productivity that will improve their welfare in turn,” Irham said.

Meanwhile, Chairman of Indonesia`s Palm Oil Smallholder Union (SPKS) Mansuetus Darto spoke about the importance of working at its best results in a synergy that can be very productive. Supports are needed, but they consider not only grants, but also capacity building. “Smallholders need support particularly from the government and palm oil companies. Their capacity and market access also need to improve,” Darto said. ***