Coordinating Minister Airlangga Says Palm Oil Rejuvenation Realization Increases 72.35 Percent

Coordinating Minister for Economic Affairs (Menko) Airlangga Hartarto. (Photo: Doc. ANTARA)

Coordinating Minister for Economic Affairs Airlangga Hartarto conveyed that the realization of the people's palm oil rejuvenation program (PSR) in 2023 reached 53,012 hectares (ha), an increase of 72.35 percent compared to 2022 which amounted to 30,759 ha.

The government also noted that the distribution of PSR funds in 2023 was IDR 1.5 trillion, which was given to 21,020 planters.

In a meeting at the Presidential Palace in Jakarta, Coordinating Minister Airlangga highlighted several crucial points from the meeting, one of which was related to the realization of the oil palm replanting program which only reached 30 percent of the 180,000 ha target.

"One of the obstacles is in the regulations. Therefore, the Ministry of Agriculture was asked to review the regulation of the Minister of Agriculture because people's gardens cannot be replanted because they are asked for two things. One, in addition to certificates, recommendations from the Ministry of Environment and Forestry were also requested," said Airlangga as quoted by ANTARA, Tuesday, February 27.

Airlangga also emphasized that one of the main obstacles is regulations that complicate the replanting process for people's plantations.

In the PSR program, in the first year, people's oil palm plantations can get assistance funds of Rp. 30 million per hectare with a maximum garden area of four ha.

For the second year and then, the planter can take advantage of people's business credit (KUR) with a maximum ceiling limit of IDR 500 million and six percent interest per year.

Currently, the proposed increase in aid funds is being proposed to be IDR 60 million for the cost of plantation construction, 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 academic text study and also from the results of communication with the planters, it is for their replanting to only bear fruit in the 4th year," explained Airlangga.

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 urgency of the land. Judging from the list that has entered, the output is still very small. In fact, 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 must also be encouraged," he explained.