The History of Palm Oil in Jambi

The History of Palm Oil in Jambi

InfoSAWIT, JAKARTA - Palm oil plantations in Jambi have been developed since 1980s. PTPN VI, the government’s company, and PT Indo Sawit Subur (Asian Agri Group), were the pioneers to develop the plantations in the province. The palm oil plantation companies started from the government’s program through Petani Inti – Rakyat (PIR) program which got the fund support from the World Bank at the time.

In 1983, PTPN VI enlarged palm oil plantations within the PIR program in Sei Bahar, Bunut, SMK, and Tanjung Lebar. As it run, the private companies did the same too.

One of the companies was PT Indo Sawit Subur. It run PIR program for the first time after getting the license from the government in Jambi.

PIR program proposed by the government was to manage and cultivate the plantations including palm oil through the cooperation with the companies as the Foster Father and the people as the smallholders developed by the companies. It was supported and developed to make plasma plantations.

From what InfoSAWIT got, the development done by the companies was usually done by cultivating the people’s plantations. The partnership used the fund helps from the banks. The companies became the avalis, to loan the money or credit to be used to develop the plasma plantations belonging to the smallholders.

Through the cooperation and partnership between the companies and the smallholders, the plantations were enlarged. The cultivation was done based on the same agreement between both sides. Some smallholders should directly involve in developing the plantation since it started, but some gave license to the smallholders’ groups or union groups to cultivate the plantation.(T1)


This article once published in InfoSAWIT, July 2018


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