Attending The 96th NU Harlah, Coordinating Minister Airlangga Encourages Acceleration Of People's Palm Oil Rejuvenation Program In Muara Enim

Coordinating Minister for Economic Affairs, Airlangga Hartarto. (Photo: Doc. Coordinating Ministry for the Economy)

JAKARTA - The national palm oil industry is known to contribute to the national GDP by 3.5 percent and has a role in alleviating poverty and creating jobs for more than 16 million workers.

The palm oil industry encourages the growth of the domestic industry by producing more than 146 types of downstream products, namely food products, industrial products, as well as energy products that substitute diesel fuel through the mandatory B30 biodiesel program which saves foreign exchange by reducing diesel imports.

"So it can be said that palm oil is a commodity that is always needed by the people of Indonesia and the world community," said Coordinating Minister for Economic Affairs Airlangga Hartarto in his remarks at the Initial Planting of People's Oil Palm Rejuvenation (PSR) and Palm Oil Planters Gathering with the theme Sustainable Nature, Prosperity of Farmers who held in Kencana Mulia Village, Rambang District, Muara Enim Regency, South Sumatra, Friday 4 March.

This PSR Initial Planting activity was carried out in commemoration of the 96th Birthday of Nahdlatul Ulama (NU) which took place on oil palm plantations belonging to the Serasa Mulya Cooperative, Maju Bersama Cooperative, and Gapoktan Agreed with a total land area of 328.5 hectares.

"Today's activity is oil palm replanting which has become a Government program, and this is clear evidence of the Government's support in the success of the PSR program. It is hoped that in the future independent oil palm smallholders can be motivated to take part in the PSR program. Palm oil can also encourage the achievement of the PSR target," said Coordinating Minister Airlangga.

Palm oil is seen as an important commodity for the national economy, therefore the Government continues to strive to accelerate the realization of the PSR or replanting program with various policies, one of which is by encouraging the form of multi-stakeholder strategic cooperation.

The General Chairperson of the Golkar Party DPP said the PSR program is one of the National Strategic Programs as an effort by the Government to increase the productivity of the national oil palm plantations, which currently averages 3-4 tons per hectare and the plants are over 25 years old.

The implementation of the PSR program with the use of superior seeds and the application of Good Agriculture Practice (GAP), will increase oil palm production without having to clear new land, so as to increase the income of smallholders optimally.

The PSR program is targeted for 2020-2022 for an area of 540 thousand hectares and is supported by financing from the Palm Oil Plantation Fund Management Agency (BPDP-KS) of Rp. 30 million/hectare for a maximum of 4 hectares/planter.

"For working capital such as buying fertilizer and so on, it can be continued by using People's Business Credit, which is given a grace period of 5 years and the interest rate is only 3 percent because the remaining 3 percent is subsidized by the government," explained Coordinating Minister Airlangga.

At the stage of submitting the PSR in 2022 in Muara Enim Regency, it is targeted to propose a land area of 1,399 hectares of land for farmers who are members of 11 cooperatives or Gapoktan.

Since 2017-2022, the implementation of the PSR Program in Muara Enim Regency has reached an area of 4,716 hectares spread over 15 villages and 4 sub-districts on land owned by 17 cooperatives and Gapoktan.

This initial PSR planting activity in Muara Enim Regency was carried out because of good cooperation between the Coordinating Ministry for the Economy, Bank Negara Indonesia (BNI), BPDPKS, and NU.

On that occasion, the chairman of the PBNU KH Yahya Cholil Staquf said the NU organization was ready to be involved in various national agendas for the benefit of the community.

"I thank and appreciate the entire event committee at Kencana Mulia Village, we hope this can continue to be replicated in other regions in Indonesia. And of course the cooperation of various parties, including the Central Government, Provincial Government, Regency / City, Banking, Cooperatives, Gapoktan, so that the target of 180,000 hectares can be carried out this year so that farmers are successful, prosperous, and Indonesia can rise after the COVID-19 pandemic," concluded Coordinating Minister Airlangga.

Also attending the event at Kencana Mulia Village were Minister of Industry Agus Gumiwang Kartasasmita, Deputy Minister of Trade Jerry Sambuaga, Member of the Indonesian Parliament, Governor of South Sumatra Herman Deru, Head of PBNU KH Yahya Cholil Staquf, Chairman of PWNU South Sumatra KH Amiruddin Nahrawi, Regent of Muara Enim Nasrun Umar, Deputy for Food and Agribusiness Coordination at the Coordinating Ministry for the Economy Musdhalifah Machmud, Director of BPDPKS Eddy Abdurrachman, Director of Institutional Relations Sis Apik Wijayanto, and community leaders.