InfoSAWIT, ROKAN HULU - The smallholder joining in Koperasi Unit Desa Bangkit Usaha Makmur (KUD-BUM) in the Village of Bencah Kesuma, Sub district of Kabun, District of Rokan Hulu (Rohul), Riau is lucky because the SRP got fund support from Palm oil Plantation Fund Management Agency (PFMA).
But the mechanism process hit the issues because the proposal mechanism to SRP to get the fund from PFMA was comprehensive enough. There were many conditions to get. But they, the members of KUD-BUM succeeded. It was proved that they got the fund from PFMA for about Rp 22,8 billion.
The fund would be used to multiply the SRP fund that they have saved about Rp 10 million per family.
By the fund, the smallholders of KUD-BUM have easier burden, while the lack would be covered by the banks.
The SRP run in about 907 hectares within about 372 families.
Chairman of KUD-BUM, Khoirum said that the SRP would be done in two phases. The first one has run for about 857 hectares within the fund reaching Rp 21,5 billion. The second would cover about 50 hectares within the fund reaching about Rp 1,3 billion.
Plantation Agency of Rohul facilitated the certified superior seeds in fulfilling the needs in SRP. It was done in the form of Cooperation Agreement.
The SRP supported by PFMA runs in partnership system by the buying the fresh fruit bunch (FFB) as the off taker done by PT Rohul Sawit Industri (one subsidiary of BGA Group).
Not only as the buyer, the company also developed the smallholders in good agricultural practices (GAP) while the smallholders keep cultivating theirs independently.
“This is the gift for the people because they could run SRP which spends lots of money. Their plantations are mostly more than 20 years old and the productivity gets reducing. The smallholders getting the fund help do welcome the program happily and could independently cultivate theirs,” he said. (T2)
This article once published in InfoSAWIT, January 2020