Ministry of Agriculture Urges Palm Oil Cooperatives to Maximize Access to PSR and Infrastructure Programs

Palm Oil Magazine
Ministry of Agriculture emphasizes the vital role of cooperatives in helping palm oil smallholders access PSR, capacity-building, and infrastructure programs, highlighting collaboration as the key to success.. Photo by: Sawit Fest 2021 / Aprilia Goverty

PALMOILMAGAZINE, KUBU RAYA – The Ministry of Agriculture, through the Directorate General of Plantations, has underscored the critical role of cooperatives in helping smallholders gain better access to key palm oil development programs. These include the Smallholders Oil Palm Replanting Program (PSR), human resource capacity-building initiatives, as well as infrastructure support.

According to Togu Rudian Saragih, Head of the Palm Oil Cultivation Group at the Directorate of Oil Palm and Other Perennial Crops, well-structured cooperatives serve as an official channel for farmers to access government assistance.

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“If cooperatives are well-organized, then access to support programs and partnership schemes—such as the nucleus–plasma model—will be much easier to implement,” Togu said during the 5th Indonesian Palm Oil Smallholder Conference (IPOSC) held in Kubu Raya on Wednesday (24/9/2025), attended by Palmoilmagazine.com.

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He highlighted examples from regions such as West Kalimantan, where coordination between cooperatives, local governments, and corporate partners has begun to take shape, though challenges remain in execution. Strengthening education and human resource development at the district and provincial levels, he added, is crucial to ensure programs run effectively.

Togu also referred to regulatory frameworks that support smallholders, particularly Minister of Agriculture Regulation No. 38/2020, which serves as the basis for various plantation development initiatives.

“This regulation ensures priority is given to farmers who are part of formal institutions to receive government support, provided there is clear commitment and readiness from the recipients,” he explained.

He further expressed hope that regular forums and meetings would foster stronger communication among farmers, cooperatives, and government agencies.

“The key lies in collaboration. If cooperatives and farmers are well-structured, the government will be fully committed to supporting them,” Togu concluded. (P2)

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