Utilizing infrastructure funds from PFMA to Upgrade the Roadways

Palm Oil Magazine
Doc. Sawit Fest 2021/ Budi Candra Setya

PALMOILMAGAZINE, JAKARTA – Putra Rangkuti, a practitioner in the palm oil industry, has proposed a solution: utilizing infrastructure funds from the Palm Oil Plantation Fund Management Agency (PFMA) to upgrade the roadways in districts and improve the living conditions of villagers residing in palm oil plantation areas.

Given the limitations of infrastructure funds, a prudent approach would involve directing these funds towards road improvements, thereby enabling the local villagers to move more efficiently within these regions.

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“Some parts of ways in District of Simalungun, Labuhan Batu, Asahan are bad. The ways to the plantations could be worse and difficult to get there particularly when it is raining. Eventually, the people, as smallholders, get the impacts,” he said, as in the official statement to Palmoilmagazine.com, Thursday (17/8/2023).

Also Read : Andi Nur Alam Syah: Qualified Infrastructures Would Accelerate SRP

While palm oil plantations contribute taxes to the country, a significant challenge arises from the deteriorating transportation infrastructure in districts and provinces. The frequent passage of trucks for the transportation of fresh fruit bunches (FFB) has led to the degradation of these routes.

Addressing this issue requires strategic allocation of funds to enhance transportation infrastructure, as the current fund distribution in many regions falls short.

He quoted data from Central Bureau of Statistic District of Simalungun in March, the ways in the district laid about 1808,78 kilometers – 50 percent of the numbers were categorized to be totally broken or 971,33 kilometers. District of Simalungun is one palm oil plantation centers.

He also suggested, there should be, at least, Rp. 1 trillion that PFMA should provide to improve the ways in palm oil plantation centers. The regional government could manage the fund or even PFMA itself. The numbers, he continued, might be not much than what PFMA has gathered that reached Rp. 186,6 trillion.

“I hope, this needs attention and support from the local region where palm oil plantations grow. at least, fund management from one business once ran, for example, from cigarette tax that the fund was allocated to develop (one) regions. It would block the issue saying that palm oil fund was only for corporates,” Putra said. (T2)

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