The Realization Of The PSR Program Is Still Far From The Target, This Is What Airlangga Will Do
Coordinating Minister for Economic Affairs Airlangga Hartarto conveyed that the people's palm oil rejuvenation (PSR) program only reached around 50 thousand hectares (Ha) per year since 2017. This figure is below the target set by President Joko Widodo (Jokowi) of 180 thousand Ha per year.
"Our average (PSR) only reaches around 50 thousand Ha per year and this is less than 30% of the target that was announced by the President at 180 thousand Ha per year," said Airlangga at the National Coordination Meeting on the National Action Plan for Sustainable Palm Oil Plantation (RAN-KSB) 2019-2024, Thursday, March 28, 2024.
For information, since it was launched by President Joko Widodo in October 2017, the PSR Program until 2023 has touched 142,078 people's palm oil plantations with disbursed funds of Rp9.11 trillion and with a total PSR area of 326,678 ha.
Therefore, Airlangga said that he wanted to accelerate and strengthen the PSR and Indonesia Sustainable Palm Oil (ISPO) certification program because it includes an error from the supply chain of palm oil with the concept of downstreaming.
"This is important because this is a response to the European Union Deforestation-free Regulation (EURD) policy," said Airlangga.
Airlangga said that to accelerate and strengthen the role of PSR, namely the provision of funds through the Palm Oil Plantation Fund Management Agency (BPDPKS) amounting to Rp9.25 trillion with a land area of 331,007 hectares.
In addition, Airlangga added that the government plans to increase the cost for PSR from Rp. 30 million to Rp. 60 million per hectare per year.
"We are facing an increase in costs to Rp60 million, not only in the first year, but in the second and third years it can be financed for the livelihood of the planter," he explained.
Airlangga said Presidential Instruction Number 6 of 2019 concerning RAN KSB 2019-204 will be an instrument whose implementation will require cooperation from provinces to districts. Because regional action plans are very important because they are indicators of palm oil sharing funds to local governments.
"The profit-sharing funds that were disbursed last year amounted to Rp3.4 trillion and some of their use included road infrastructure in plantations, data collection on oil palm plantations, preparation of regional action plans," he said.
President Director of BPDPKS, Eddy Abdurrachman, said that PSR funds of Rp. 30 million are sometimes only sufficient for planting seeds. So it requires support in increasing funds.
"So that the planters still have to provide pet funds until the garden reaches the producing plant," said Eddy.
In addition to increasing funds, BPDPKS will also continue to accelerate the implementation of the target of rejuvenation of people's palm oil through ease of regulation. Later, people's palm oil business licensing can be accelerated for a maximum of 15 days.