The Government Proposes An Increase In Palm Oil Rejuvenation Funds To IDR 60 Million/Hectare

Coordinating Minister for the Economy Airlangga Hartarto when met at the Presidential Palace in Jakarta, Tuesday (27/2/2024). ANTARA/Mentari Dwi Gayati

Coordinating Minister for Economic Affairs Airlangga Hartarto proposed that oil palm rejuvenation grants for self-help farmers increase from IDR 30 million per hectare to IDR 60 million per hectare. "We also propose an increase in funds for the'replanting' which is now given Rp. 30 million to be increased to Rp. 60 million," said Airlangga when met at the Presidential Palace in Jakarta, Antara, Tuesday, February 27. Airlangga explained that based on the results of academic studies and communication with palm oil plantations, funds for oil palm rejuvenation of Rp. 30 million were only able to cover rejuvenation costs in the first years. He said the palm oil plant would only bear fruit in the fourth year after replanting. On the other hand, the planter must also clean the land until the seed procurement is optimal. Self-help oil palm farmers also need the cost of supporting their lives when palm oil plants have not yielded, so they can plant intermediate plants. "If the funds are only Rp. 30 million, it is only enough for them to live in the first year. Buy seeds and then live in the first year. Therefore, if it is increased to Rp. 60 million, then the cost of living around Rp. 15 million per year can be covered," said Airlangga. On the same occasion, the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency Agus Harimurti Yudhoyono said that the proposed increase in palm oil rejuvenation funds is expected to be the basic capital for planters to increase their palm oil production. "How can our farmers also have basic capital to be able to rejuvenate palm oil. If it is successful, it will not only improve welfare for farmers and families, but economically it will be significant for the country," said Agus, who is familiarly called AHY.

The government targets the realization of people's oil palm rejuvenation to reach 180 thousand hectares through the use of funds from the Palm Oil Plantation Fund Management Agency (BPDPKS).