PALMOILMAGAZINE, LAMPUNG – With support from the Palm Oil Plantation Fund Management Agency (PFMA), the Indonesian Palm Oil smallholders Association (Asosiasi Petani Kelapa Sawit Indonesia / Apkasindo) has strengthened plasma smallholders’ institutions in Lampung. Gulat Manurung, Chairman of Apkasindo, emphasized the importance of this initiative to ensure that smallholders can maximize profits from their plantations.
“It is essential for smallholders to form groups or unions and engage in partnerships to leverage economies of scale and enhance economic benefits,” he stated during the inauguration of a workshop on “Strengthening Institutional and Partnership of Smallholder Oil Palm” at Hotel Aston Bandar Lampung from March 27 to 29, 2024.
Manurung highlighted that the goal of fostering partnerships is to increase value addition, promote equity, empower small businesses, and expand employment opportunities.
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As in the official statement to Palmoilmagazine.com, Saturday (30/3/2024), it is acknowledged or not, partnership proved markets to ease smallholders when selling their plantation production, support sustainability to escalate their economy, and plantation productivity by having field training and development.
To realize and accelerate independency in one region, it needs to conduct alternative things, such as, reinforcing institution. It is about to escalate their economic scale, get efficient business, and bargaining position.
Though fresh fruit bunch (FFB) governance in the smallholders’ level has been regulated by the Regulation of Minister of Agriculture Number 01 / 2018 abut FFB Price Decision Guidelines produced by Planters, the goal of the regulation would be about to protect them to get normal, fair FFB price and avoid unhealthy competition with plantation companies.
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It is too sad, Apkasindo told, the regulation just protects the planters in partnership that just reached 7% while the independent smallholders that reached 93% did not get price protection still.
For information, the event was inaugurated by Head of Plantation Agency Lampung Province. The participants were from 7 regencies and 1 city in Lampung where palm oil plantations develop there. Head of Plantation Agency Lampung Province told that the smallholders should join organizations or groups and get partnership to be stronger, better, and go forward. (T2)
