Replanting Program for Independent Smallholders of Sinar Mas through Integrated Partnership

Replanting Program for Independent Smallholders of Sinar Mas through Integrated Partnership

InfoSAWIT, MUSI BANYUASI –Through integrated partnership, Sinar Mas Agribusiness and Food since 2015 has prepared the replanting program for the independent smallholders in phase.

The commitment is realized and strengthened by the signing of Memorandum of Understanding (MoU) to support the program for the next 12 months. The signing was done by Director General of Plantation, Ir. Bambang, MM;Director of Palm oil Planation Fund Management Agency (PFMA), Dono Boestami: Director of PT Ivo Mas Tunggal Franciscus Costan, one subsidiary of Sinar Mas Agribusiness and Food, and Chairman of Koperasi Sawit Kandis Sejahtera, Alfan Lubis; witnessed by Coordinator Secretary in Economy, Darmin Nasution.

“We have been doing the replanting program since 2015. Through the integrated partnership, we develop and guide them on – farm, such as, giving certified seed, using the fertilizer, practicing sustainable agronomy, and searching the sources of fund within off taker,” Chairman of Sinar Mas Agribusiness and Food, Franky O. Widjaja said when attending the first planting of palm oil replanting program done by PresidentJokoWidodo in Village of Panca Tunggal, Sub district of Sungai Lilin, District of Musi Banyuasin, South Sumatera, in the official statement to InfoSAWIT.

In the practice, the partnership program is always hit by the area legal. The smallholders’ areas have no certificates, the weak cooperation, the lack understanding of good agricultural practices, and hard to get finance from the bank.

In his speech when launching the people’s replanting program, Presidentt Joko Widodo said, it is important to accomplish the license and the land certificate to realize the replanting program as soon as possible.

For it involves many sides, including the banks, Franky reminded that the legal is the main factor to the replanting program. But it is also the main issue for the independent smallholders. “It needs to adjust the regulation so that the innovative financing scheme would be optimal. The banks would not be hesitating to support the program by giving small interest –rate,” he said.

In the same location, Managing Director Sinar Mas, Gandhi Sulistiyanto said, the integrated partnership could empower other government’s programs, and make the good economy for the people.

The replanting program done by Sinar Mas Agribusiness and Food has covered more than 600 independent smallholders within more than 1.400 hectares in Riau dan Jambi. The company has succeeded to identify the potential area reaching 3.500 up to 5.000 hectares of the independent smallholders in North Sumatera, Jambi, and Riau. In Indonesia, there would be 4,7million hectares of the people’s areas, and 800.000 hectares should be replanted immediately. (T2)

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