PALMOILMAGAZINE, SUNGAILIAT – The Bangka Regency Government has intensified efforts to resolve outstanding loans under the Smallholder Palm Oil Plantation Development Program (KKSR), which continue to burden a number of independent oil palm farmers. Bangka Regent Fery Insani has given PT Sawindo Kencana a two-week deadline to engage directly with the government and settle the dispute.
The warning was delivered during a coordination meeting on Monday (8/6/2026) at the Regent’s Official Residence, where local authorities discussed accelerating the resolution of the KKSR credit issue. According to Fery, the prolonged delay in addressing farmers’ loan obligations can no longer be tolerated, particularly as the company has yet to demonstrate sufficient commitment to resolving the matter.
Fery expressed frustration over the repeated absence of company executives from meetings convened by the regional government, arguing that such nonattendance has hindered efforts to find a solution for affected farmers.
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“The regional government has consistently opened channels for dialogue, but to date the company’s leadership has never attended directly to discuss a resolution,” he said, as quoted by Palmoilmagazine.com from negerilaskarpelangi.com on Tuesday, June 9, 2026.
The Regent stressed that if no formal meeting takes place and no agreement is reached regarding amendments or addendums to the KKSR arrangement within the next two weeks, the Bangka administration will move to propose the revocation of the company’s operating permit in the region.
He emphasized that protecting the interests of smallholder farmers remains the government’s top priority. As a result, the administration is prepared to pursue administrative and legal measures if necessary to safeguard communities participating in the smallholder palm oil development program.
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In addition, the Bangka Regency Government plans to submit an official report to the Governor of the Bangka Belitung Islands Province, seeking provincial support to help accelerate a fair and sustainable resolution for affected farmers.
Meanwhile, PT Sawindo Kencana stated that it would convey the outcome of the meeting and the government’s ultimatum to the company’s management. The company’s Legal and Public Relations Manager, Pradana Simanungkalit, said PT Sawindo Kencana remains open to dialogue and committed to finding a mutually acceptable solution.
According to Pradana, the company recognizes that several outstanding issues still need to be addressed in coordination with its partners and cooperatives. He expressed hope that more intensive communication among stakeholders would help identify a workable compromise.
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Regarding the absence of company directors from previous meetings, Pradana explained that management had been unable to attend due to prior commitments, including discussions related to pricing disparities between Fresh Fruit Bunches (FFB) and Crude Palm Oil (CPO).
“We will report the results of this meeting to management and hope that this long-standing issue can soon reach the best possible resolution,” he said.
The KKSR credit dispute in Bangka Regency has become a major concern for local authorities because of its implications for the sustainability of smallholder palm oil businesses and legal certainty within plantation partnership schemes. With a firm deadline now in place, farmers are closely monitoring developments as they await clarity on the future of the program and the resolution of their outstanding obligations. (P1)
