REA Advances Village Empowerment Through Productive Asset Partnership

Palm Oil Magazine
PT REA Kaltim Plantations hands over three vehicles as village-owned assets, creating recurring revenue and reinforcing economic resilience in Kembang Janggut. Photo by: REA

PALMOILMAGAZINE, TENGGARONG – PT REA Kaltim Plantations (REA) has handed over three vehicles as part of a productive business initiative under the Fasilitasi Pembangunan Kebun Masyarakat (FPKM) replacement scheme in Kembang Janggut Village, Kembang Janggut Subdistrict, Kutai Kartanegara (Kukar), East Kalimantan.

The symbolic handover took place on Wednesday (11/2) at Pendopo Odah Etam in Tenggarong. The event was attended by Kutai Kartanegara Regent dr. Aulia Rahman Basri, M.Kesm., REA President Director Luke Robinow, REA Group Chief Sustainability Officer Dr. Bremen Yong, the Head of Kembang Janggut Subdistrict, and the Village Head of Kembang Janggut.

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The program implements a partnership agreement signed in mid-2025. The scheme is designed to strengthen community livelihoods through locally driven economic solutions formulated in close consultation with the village government.

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Village-Owned Productive Asset Model

Under the FPKM partnership framework, the vehicles are registered as village-owned assets and managed by the village cooperative. The units are then leased back to REA to support operational activities, creating a recurring income stream for the village.

This approach enables the village to finance priority community programs, create job opportunities for local residents, and enhance village-level economic resilience. The model is also aligned with the government’s downstream development agenda, promoting local value creation so that economic benefits remain within the community.

“For us, FPKM implementation must create sustainable value, not short-term assistance,” said Luke Robinow, President Director of REA, in an official statement received on Friday (13/2/2026). He emphasized that the program framework ensures long-term utilization of assets and stable income generation for the community.

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Aligned with Sustainability Pillars

The initiative supports one of REA’s four strategic sustainability pillars—Empowering Livelihoods—which focuses on strengthening community income sources through inclusive partnerships and locally based solutions.

Kutai Kartanegara Regent dr. Aulia Rahman Basri stated that the FPKM implementation is expected to address stakeholder needs while fostering a conducive investment climate in Kutai Kartanegara.

The Head of Kembang Janggut Village welcomed the scheme, noting that the model enhances village independence. By retaining ownership of the vehicles and leasing them to REA, the village secures regular income and flexibility in allocating funds based on community priorities.

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Yadi, S.Pd., Chair of Koperasi Desa Merah Putih Kembang Janggut, added that as the implementing partner, the cooperative hopes the collaboration will sustainably improve village welfare and drive long-term economic prosperity.

Meanwhile, Dr. Bremen Yong underscored that sustainability means creating long-term value through collaboration. By structuring FPKM around village-owned productive assets that continuously generate value, REA aims to strengthen community trust while supporting socio-economic development and resilience at both village and broader landscape levels. (P2)

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