InfoSAWIT, JAKARTA -According to PFMA, to run the program based on the good management, the program would run in five phases. The first one is by verifying the condition starting from the smallholders’ groups, to Plantation Agency in the district, province, and General Directorate to get the agreement.
The second is by making 3 sides of agreements among PFMA, the banks, and the union or the smallholders’ group. The third is by distributing the fund based on the replanting governance that Ministry of Agriculture has regulated.
The fourth is by monitoring and evaluating the program done by General Directorate of Plantation, Ministry of Agriculture; plantation agency in the province/district/city, PFMA, the banks; and the fifth is by returning the credit through KUR scheme within 5 year - grace period and 7% of interest rate per year.
After completing the administration procedures, the next phase in the mechanism technic. This would pass some phases too, such as, the first, cutting the old palm oil trees in the same time; the second, planting the seeds by using certified ones.
The third is by training and empowering the smallholders within Good Agricultural Practices; and the fourth, publishing ISPO certificate. Herdrajat said, in the phase, it is hoped that the first and second harvest, the smallholders’ plantation could get the ISPO certificate.(T2)
This article once published in InfoSAWIT August 2018