BPDPKS Agrees to Increase Palm Oil Farmers' Assistance to Rp60 Million

BPDPKS Agrees to Increase Palm Oil Farmers' Assistance to Rp60 Million

JAKARTA - The Palm Oil Plantation Fund Management Agency (BPDPKS) has agreed to increase funding support for the PSR (People's Palm Oil Rejuvenation) program which is given to planters with a maximum area of ​​4 hectares per family head. The amount is around Rp. 60 million per hectare.

 

However, this increase has not been approved by the Steering Committee consisting of ministers, with the chairman of the Coordinating Minister for the Economy. So that BPDPKS status will propose the increase.

 

This was revealed in a meeting between oil palm farmers with BPDPKS and the Directorate General of Plantations of the Ministry of Agriculture facilitated by the Chair of the DPD RI.

 

At the meeting, the Chairperson of the DPD RI was accompanied by Senators from Lampung, Bustami Zainuddin, M Syukur (Jambi) and Abdullah Puteh (Aceh), as well as the Special Staff for the Chairperson of the DPD RI, Sefdin Syaifudin.

 

From the farmers, there were Kobar Sembiring and Soaduon Sitorus from the National Oil Palm Farmers Network and Pahala Sibuea from the Association of Oil Palm Farmers Organizations (POPSI).

 

Also present were the President Director of BPDPKS, Eddy Abdurrachman, Finance Director Zaid Burhan Ibrahim and the Head of the USDM Division Adi Sucipto. Meanwhile, the Ministry of Agriculture was represented by the Acting Director for Processing and Marketing of Plantation Products from the Directorate General of Plantations of the Ministry of Agriculture, His Majesty Siagian and the Sub-Coordinator of Domestic Marketing of the Directorate General of Plantations of the Ministry of Agriculture, Elvy Risma.

 

"The government's decision through the Steering Committee is Rp. 30 million per hectare from the previous Rp. 26 million per hectare. It's not enough. The funds of Rp. 30 million are only for planting seeds. We have proposed that there be an evaluation or review. Our proposal is Rp. 60 million per hectare. However, all of this must be based on the approval of the Steering Committee," said the President Director of BPDPKS, Eddy Abdurrachman, on the VIII Floor of the Nusantara III Building, Senayan Parliament Complex, Jakarta, Thursday (11/8/2022).

 

Eddy admitted that he agreed to continue to improve the quality of farmers. The goal is to build self-reliance among farmers. However, the government's basic concept is actually Rp. 30 million in aid in the form of grants, then farmers can take advantage of the People's Business Credit (KUR) facility with low interest rates.

 

Eddy explained that BPDPKS is the technical implementer of the decisions set by the Steering Committee consisting of eight ministers chaired by the Coordinating Minister for the Economy, Airlangga Hartarto.

 

According to him, BPDPKS, the Public Service Agency (BLU) formed by the government. The aim is to increase the price of palm oil which has been affected by the sharp decline in the price of palm oil.

 

This is because production continues to increase but the absorption of palm oil in the market is not good enough. "The government continues to encourage the absorption of palm oil in the market to increase. So this BPDPKS was formed with the aim of increasing absorption, thus raising the price of palm oil again," said Eddy.

 

Eddy continued, other tasks of BPDPKS are rejuvenating palm oil, developing human resources, providing support for infrastructure and facilities as well as promotion to increase the price and absorption of palm oil. "Regarding PSR, BPDPKS's job is only to distribute funds based on technical recommendations from the Director General of Plantations of the Ministry of Agriculture," said Eddy.

 

He explained, if in the market, the price of CPO is higher than oil. Therefore, the funds raised by BPDPKS are intended to pay the difference between CPO and crude oil prices in the Biodiesel (B30) program.

 

He said, from 2016 to July 2022 the realization of the distribution of PSR funds covering an area of ​​256,743 hectares for 112,414 planters with PPKS funds of Rp7.01 trillion.

 

For the realization of the HR development program a total of Rp. 247.61 billion. As for the biodiesel incentive program from 2015 to July 2022, it was Rp. 136.5 trillion.

 

"Projected revenues of Rp60 trillion, only with dynamics that continue to grow, optimistic revenues of Rp42 trillion.

 

The Coordinator of the National Oil Palm Farmers Network, Soaduon Sitorus, explained that the condition of oil palm farmers has become increasingly alarming since the Speech on the Prohibition of Exports of Palm Fruit Derivative Products on Friday, April 22, 2022, which is effective from April 28, 2022.

 

"When global prices are improving, suddenly the government issues regulations to break the global trade chain. This has a wide impact on the palm oil industry chain, especially oil palm farmers as the most vulnerable parties in the upstream part of the industrial chain," he explained.

 

Even though the government has lifted the export ban, the price of oil palm Fresh Fruit Bunches (FFB) at the farm level has even fallen from Rp 4000/kg to Rp 600/kg.

 

He said, with the help of the PSR program of Rp. 30 million, he had to return to debt, so what happened was that he was in debt. "It doesn't make farmers more independent, but instead they are in debt," said Sitorus.

 

Regarding parenting, Sitorus assesses that the real problem is not superior seeds or local seeds. Sitorus said that when he talked about increasing the yield of oil palm plantations, as an independent oil palm farmer, he considered that the main thing was maintenance.

 

"We've spent a lot of investment costs. It's only because the superior seeds have to be parented. We can show that local seeds can beat superior seeds. Productivity is low because of low maintenance, not because of seeds. So, the solution is to increase maintenance," said Sitorus.

 

Sitorus also asked that BPDPKS be disbanded because it was deemed not to provide much benefit to oil palm farmers. Pahala Sibuea from the Association of Oil Palm Farmers Organizations (POPSI) hopes that there will be someone in charge of specifically for oil palm farmers within BPDPKS, so that they focus on taking care of all the needs of farmers.

 

"The funds used by BPDPKS are also collected from farmers. So, we hope that there is someone in charge of farmers specifically, so that the direction is clear," hoped Pahala.

 

The Acting Director of Processing and Marketing of Plantation Products at the Directorate General of Plantations of the Ministry of Agriculture, Sultan Siagian explained, so far his party has received data that has been verified by the plantation office in stages starting from the district to provincial levels. "After that it was submitted to us and we re-verified it," said the king.

 

On the other hand, responding to this, Senator from Jambi, M Syukur, admitted that he knew the details of the problems faced by oil palm farmers. "So, please explain in detail how much funds are currently available, how much funds are channeled to farmers, how many units are there, including how much money is left. We want this problem to be resolved immediately so that our oil palm farmers can benefit from the program being rolled out. government," said M Syukur.

 

Meanwhile, Senator from Aceh, Abdullah Puteh asked that oil palm farmers can get direct benefits without a long time and mechanism. "If you rely on KUR Agriculture, implementation in the field turns out to be difficult for farmers to access. Instead of without collateral, the facts on the ground are difficult for farmers to access without guarantees," said Puteh.

 

Meanwhile, Senator from Lampung, Bustami Zainuddin, hopes that the government can put forward policies that favor the people, in this case oil palm farmers. "The government is here to provide solutions. The government is to govern. We can't find a solution that makes it easy and sided with the farmers. It must be decided immediately. Pity our farmers," said Bustami.

 

The chairman of the DPD RI himself feels that he has not found a bright spot on the problems faced by oil palm farmers. LaNyalla also hopes that this issue can be resolved soon. Therefore, the Senator from East Java requested that a meeting be scheduled at Committee II by presenting all parties in a more complete manner.

 

"I want this issue to be resolved immediately. It's a shame for our farmers. I want a more complete meeting to be scheduled and the decision makers to attend," said the Senator from East Java. (*)

 

LANYALLA PRESS, MEDIA AND INFORMATION BUREAU

READ MORE ON GOOGLE NEWS. or Let's join the Telegram group "Palm Oil Magazine", click the link https://t.me/palmoilmagazine, and join. You must first install the Telegram application on your android.