PALMOILMAGAZINE, JAKARTA – PalmCo and Rumah Sawit Indonesia (RSI) have entered into a strategic partnership to effectively implement and expedite the Smallholders Replanting Program (SRP).
Kacuk Sumarto, Chairman of RSI, and Jatmiko K. Santosa, CEO of PalmCo, formalized this collaboration by signing a memorandum of understanding during the “Refleksi Industri Sawit 2023 dan Tantangan Masa Depan” event on Wednesday (10/1/2024) in Jakarta.
Jatmiko K. Santosa, CEO of PalmCo, expressed that the company aims to conduct SRP this year, targeting 60 thousand hectares and involving 120 thousand smallholders. The initiative is set to receive support from the Palm Oil Plantation Fund Management Agency (PFMA), with the anticipation that smallholders will receive assistance in executing the program.
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“SRP realization would cover the help in credit guarantee, plantation registration, and access to get qualified and certified seeds,” he said to Palmoilmagazine.com.
Jatmiko also told SRP would encourage to deliver better lives for smallholders and their families. If the assumption is one smallholder consists of four people per family, about 30 thousand families would get the support from SRP.
“SRP is hoped to escalate palm oil plantation productivity, optimally deliver the good result and the plasma smallholders’ welfare would be increasing and maintain material supplies to the mills of PalmCo,” Jatmiko said.
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Chairman of RSI, Kacuk Sumarto said that SRP is very important because it would directly deliver impacts for plantation productivity. The cooperation would be the commitment of RSI and PalmCO to identify the breakthrough to accelerate SRP and solve every field condition.
He also mentioned RSI as smallholders’ organization would actively play its roles to accelerate SRP. The cooperation with PalmCo as the biggest palm oil plantation company in the world, from plantation width, would be very strategic.
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Some aspects to notice in SRP implementation would be about the regulation structurisation and the technical guidelines. “We have to cooperate with related instances, establish field security system,” he said after signing the cooperation.
Besides, the smallholders’ welfare would be the focus and they have to improve their cultivation to get high productivity and a qualified fresh fruit bunch. The two institution would try the best to escalate the cultivation pattern by improving industrialization, confirming that there would be mills every party has. This would help the smallholders face production fluctuation price. (T2)