The Plasma Smallholders of Sinar Mas Agribusiness Did Replanting and Supported by PFMA

The Plasma Smallholders of Sinar Mas Agribusiness Did Replanting and Supported by PFMA

InfoSAWIT, KAMPAR – As the follow up from the agreement of cooperation that was signed in February 2019 among Koperasi Unit Desa (KUD) Makmur Lestari, PT BRI Agroniaga Tbk., Palm oil Plantation Fund Management Agency (PFMA), and Sinar Mas Agribusiness and Food through its subsidiary in Riau, PT Ramajaya Pramukti did the first smallholders’ replanting program (SRP). The agreement is about to give the grant to SRP for more than Rp 8 billion from PFMA to the smallholders as the members of KUD.

In the first, the SRP was done in the plasma plantations – the members of KUD Makmur Lestari in Village of Kenantan, Sub district of Tapung, District of Kampar reaching 322 hectares (145 smallholders) of the total areas about 32.000 hectares developed by the company in Riau. The SRP would be keep running in phase from 2019 up to 2027 in Indonesia.

CEO Sinar Mas Agribusiness and Food in Riau, Franciscus Costan said that the plasma smallholders’ plantations are old and too high and these make their productivity decrease and it needs much money to harvest.

“By the SRP and by the good agricultural practices, we could help them to increase their productivity without new plantings. They could also work as the ratio standard of labor and get salary as it is regulated. Besides, the plasma smallholders would have the chance to get Indonesian Sustainable Palm Oil (ISPO) certificate for it is the important one as the standard to palm oil governance,” he said in the official statement to InfoSAWIT, Wednesday (2/10/2019).

The SRP is the commitment of the company to encourage the successful and sustainable palm oil industries. The success of the smallholders is the success of the company. They would get bigger advantage if they join the program.

Until now the crude palm oil is relatively cheap and they could minimize the loss of income if they do SRP now. When theirs are in harvest, they would get better productivity for planting better seeds and being supported by knowledge of the experts in Sinar Mas Agribusiness and Food. “The smallholders should not hesitate to join the smallholders’ replanting program. If they join immediately, they would get profits immediately too,” Costan said.

Regent of Kampar, Catur Sugeng Susanto did welcome the realization of the SRP as the way to maintain the strategic commodity sustainably and nationally. “We do support the program and of course, the support from the private company as their partners is very important. This could increase the knowledge and skill of the smallholders to do cultivation and improve their welfare,” he said.

Meanwhile, the plasma smallholder and also the Chairman of KUD Makmur Lestari, Sudirman said that palm oil is the pillar of economy for the smallholders. “The replanting program would spend lots of money. The grant from PFM to the SRP would be very helpful for them, especially the members of KUD. This has something to do with the role of the company as the strategic business partner that facilitates and develops them to get grant,” he said. (T2)

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