Increase People's Palm Oil Productivity, Airlangga Proposes An Increase In PSR Funds To IDR 60 Million Per Ha

Coordinating Minister for the Economy Airlangga Hartarto (Photo: dock. Antara)

JAKARTA - In an effort to increase productivity and people's palm oil products, the Government continues to be committed to supporting the oil palm plantation sector, one of which is through the People's Palm Oil Replanting (PSR) program.

In 2023, the realization of the PSR program reached 53,012 ha, an increase of 72.35 percent compared to the achievement in 2022 of 30,759 ha with the distribution of PSR funds in 2023 reaching Rp1.5 trillion which was given to 21,020 planters.

Coordinating Minister for Economic Affairs Airlangga Hartarto highlighted several crucial points from the meeting. One of them is the realization of the oil palm replanting program which only reaches 30 percent of the target of 180 thousand hectares. Airlangga emphasized that one of the main obstacles is regulations that complicate the replanting process for people's planters.

"Well, one of the obstacles is the obstacles in the regulations. Therefore, we were asked to review the Regulation of the Minister of Agriculture because people's garden fields cannot be replanted because they are asked for two things. One, apart from certificates, recommendations from the Ministry of Environment and Forestry (KLHK) were also requested," said Airlangga in his statement, Tuesday, February 27.

In the PSR Program, in the first year, people's palm oil plantations can get assistance funds of Rp. 30 million per hectare with a maximum garden area of 4 ha. For the second year and then, the planter can take advantage of People's Business Credit (KUR) with a maximum ceiling limit of Rp. 500 million rupiah with an interest rate of 6 percent per year.

Currently, the proposed increase in aid funds is being proposed to be IDR 60 million for the cost of building gardens, maintenance, intermediate plants, assistance to plants starting to bear fruit (P0'P3) with a cost of IDR 10.8 trillion.

"We also propose an increase in funds for replanting which is now given Rp. 30 million to be increased to Rp. 60 million. Why should it be increased to Rp. 60 million? Because from the results of the study of the academic text and also from the results of communication with the planters, it is for their replanting to only bear fruit in the 4th year. So if the funds are Rp. 30 million, it is only enough for them to live in the first year. Buy seeds and live in the first year," he explained.

Airlangga said that if it was increased to Rp. 60 million, the cost of living around Rp. 15 million per year could be covered. So they can do intermediate plants or other plants to support life as well. Now this is under further discussion.

In addition, the Government through the Palm Oil Plantation Fund Management Agency (BPDPKS) is preparing a scholarship program to create superior palm oil human resources and ensure the sustainability of the palm oil industry in accordance with industrial challenges and sustainability principles.

Regarding the continuation of the land. Judging from the list that has entered, the output is still very small. Even though this has been included in the Job Creation Law and has been carried out since 2021. Therefore, there needs to be an acceleration of the completion of land acceleration for people's plantations. Including the division of the TORA area, it must also be encouraged," said Airlangga.