People's Palm Oil Rejuvenation Program Encourages Labor Absorption And Turns The Wheel Of The Economy

Activity photos (Photo: ekon.go.id)

JAKARTA - The government targets the People's Palm Oil Replanting Program (PSR) from 2020-2022 to be realized by 540 thousand ha spread across various regions in Indonesia, including Sumatra as much as 397,200 ha, Java 6,000 ha, Kalimantan 86,300 ha, Sulawesi 44,500 ha, and Papua 600 ha.

The PSR Program is one of the National Strategic Programs as an effort by the Government to increase the productivity of oil palm plantations, by maintaining the land area, so that oil palm plantations can be utilized optimally, as well as to resolve land legality problems that occur.

The government's target in the PSR Program in 2021 is 180,000 ha and can be supported by financing from the Palm Oil Plantation Fund Management Agency of Rp. 30 million per ha with a maximum area of 4 ha per plantation.

Coordinating Minister for Economic Affairs Airlangga Hartarto, represented by Deputy for Food and Agribusiness Coordination Musdhalifah Machmud, reviewed the implementation of the PSR or replanting program at the Gajah Mada KUD in Telaga Sari Village, Kelumpang Hilir District, Kota Baru, South Kalimantan Province, Friday, September 17.

It covers an area of 7,200 ha spread over 13 villages in 3 sub-districts, with a total of 5,274 planters. The seeds used are DXP Dami Mas type with production reaching 25-30ton FFB/ha.

"This is a concrete example of multi-stakeholder involvement in the success of the PSR Program and it is hoped that in the future the concern of the Regents/Heads of Regions in other areas that are centers of oil palm production can be spurred on to achieve the PSR Program targets," said Musdhalifah in her official statement, Saturday, September 18.

The PSR program has contributed to the recovery of the national economy during the Covid-19 pandemic by absorbing a lot of workers and turning the wheels of the economy or creating a multiplier effect.

As the largest producer and exporter of palm oil in the world, Indonesia has produced 47.18 million tons in 2020, of which around 37.3 million tons are absorbed in the export market. The export value shows that palm oil is an important commodity for the Indonesian economy and plays a role in contributing the largest foreign exchange for the country.

Based on the Decree of the Minister of Agriculture Number 833 of 2019, the national oil palm area covered by oil palm reaches 16.38 million hectares, which is dominated by smallholder plantations by 42% or 6.94 million hectares. Thus, the role of smallholder plantations in the national palm oil industry can no longer be underestimated.

The government has also issued regulations related to land settlement, such as Government Regulation Number 43 of 2021 concerning Settlement of Spatial Planning, Forest Areas, Permits and/or Land Rights.

In addition, the Government has also issued the One Map Policy through Presidential Regulation Number 23 of 2021 and is currently revising Presidential Regulation Number 61 of 2015 and Government Regulation Number 24 of 2015 to accommodate strategic issues that need to be regulated in these regulations, such as land legality, simplification. submission of PSR proposals but still being prudent, and cooperation of all parties including Law Enforcement Officials in achieving PSR Program targets.

Also attending the event were the Chief of Staff of the Navy, Admiral Yudo Margono, Head of the National Disaster Management Agency, Ganip Warsito, Deputy for Business Development Coordination of State-Owned Enterprises, Research and Innovation at the Coordinating Ministry for the Economy, Montty Girianna, Commander of the Second Fleet Command, Rear Admiral Iwan Isnurwanto, Chairman of the DPRD of South Kalimantan Province Supian, Governor of South Kalimantan Sabhirin Noor, Regent of Kotabaru Sayed Jafar, Chairman of the Eka Tjipta Foundation Hong Tjhin, Managing Director of Sinarmas Saleh Husin, CEO of Sinarmas 3 Plantation Suryanto Bun, and Director of PT SMART Harry Hanawi.