PALMOILMAGAZINE, JAKARTA – The Palm Oil Plantation Fund Management Agency (PFMA) has signed a tripartite Cooperation Agreement (PKS) for the distribution of Smallholder Palm Oil Replanting (PSR) and Infrastructure Funds (Sarpras) for Phase I of 2025. The signing event took place on February 5-7, 2025, at Nusantara I Hall, BPDP Office, Central Jakarta.
According to BPDP’s official website, as quoted by Palmoilmagazine.com on Tuesday (February 11, 2025), Normansyah Hidayat Syahruddin, BPDP’s Director of Fundraising, opened the event by reaffirming BPDP’s commitment to improving productivity and the welfare of smallholder palm oil farmers.
He emphasized that the program aligns with Minister of Agriculture Regulations (Permentan) No. 3 of 2022 and No. 19 of 2023, as well as BPDPKS Regulation No. 2 of 2024 on PSR Fund Distribution Procedures and Regulation No. 7 of 2020 on Infrastructure Fund Distribution.
Collaboration with Banking Institutions
The event was attended by national and regional banking institutions partnering with BPDP for fund distribution, including:
- PT Bank Syariah Indonesia Tbk
- PT Bank Rakyat Indonesia (Persero) Tbk
- PT Bank Mandiri (Persero) Tbk
- PT Bank Negara Indonesia (Persero) Tbk
- PT Bank Jambi
- PT Bank Pembangunan Daerah Sumatera Selatan dan Bangka Belitung
- PT Bank Riau Kepri Syariah
- PT Bank Nagari
Participation from Farmer Organizations
BPDP also invited 48 farmer organizations from various provinces across Indonesia to sign the cooperation agreement. The organizations came from:
- Aceh (4), Bangka Belitung (1), Bengkulu (9), Jambi (7), West Kalimantan (6), South Kalimantan (1), Central Kalimantan (2), Lampung (2), Riau (3), South Sulawesi (1), Central Sulawesi (3), Southeast Sulawesi (1), West Sumatra (4), and South Sumatra (4).
- Additionally, four farmer organizations from Aceh received infrastructure funding for plantation road improvements.
Funding Details
The total land area approved for PSR funding in this phase is 8,783 hectares. Each farmer organization will receive IDR 60 million per hectare, as stated in the BPDP Director’s Decision Letter. The PSR funds will be disbursed in two phases: 50% upfront at the beginning of the project, and 50% after the planting phase is completed.
To qualify for the second disbursement, farmers must submit:
- Proof of oil palm planting
- Physical Plantation Progress Report, approved by the local plantation office
- Work Supervision Report, signed by the supervisory team from each farmer organization
Ensuring Program Sustainability
Beyond the agreement signing, BPDP organized a discussion session on PSR fund application procedures, facilitated by independent surveyors. This session aimed to ensure farmer organizations fully understand fund disbursement regulations and procedures to support the sustainability of smallholder palm oil plantations.
Since its launch in 2016, the PSR program has funded 364,552 hectares of plantations, benefiting 160,000 smallholders across Indonesia. Additionally, BPDP has financed 108 infrastructure projects through the Sarpras program. (P2)
