The Tidal of Palm oil Investment

The Tidal of Palm oil Investment

InfoSAWIT, JAKARTA –The fast palm oil plantation development in Indonesia is part of business progress because it has been more than one century commercially developed in this country. Palm oil plantation often faces issues of investment in many kinds of condition.

Palm oil plantation investment had been nationally running since 1980s to 1990s. It started from the government’s program through transmigration nationally which made plantation business as the economic activity in many regions where the local villagers were small in numbers still.

the program, the people in populated region should be moved (transmigration) to the region (island) within less villagers. In the new region, they got the land to be cultivated as plantation. This was done in the scheme of Perkebunan Inti-Rakyat Transmigrasi (PIR Trans).

general, the people joining PIR Trans program got the areas reaching 2,250 hectares. The plantations laid on about 2 hectares while the housing and yard would be 0,25 hectare. But the area depends on the plantation location that the government regulated.

The plantation cultivation involved the country’s big plantation companies and national private big companies to help the people. The government’s program always involved the plantation companies to cultivate the people’s plantations.

The government revealed that the development program in PIR Trans – base had discrepancy of ability in the people themselves to implement the cultivation. This was the reason why the government took the plantation companies to help the people. This was called Anak Bapak Angkat (ABA) program.

The plantation company was as the Bapak or foster father and the people as the smallholders as the anak or children. ABA program was funded by Kementerian/Lembaga Bank Indonesia (KLBI).

The government chose some commodities, such as, palm oil, to be developed in PIR Trans program. Every big island in Indonesia, such as, Sumatera, Java, Kalimantan, Sulawesi, and Papua is the place to develop palm oil plantation. (Sunarso, President Director, PT Pegadaian - Persero)


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