PALMOILMAGAZINE, BOGOR — Indonesia’s Ministry of Agriculture is ramping up support for the national palm oil sector through the strengthening of the Smallholder Palm Oil Replanting Program (Peremajaan Sawit Rakyat/PSR) and plantation infrastructure initiatives in 2026.
Through the Directorate General of Plantations, the ministry has signed cooperation agreements for management support funding under the PSR program, along with palm oil plantation facilities and infrastructure (Sarpras), with regional work units in key palm oil-producing areas.
This initiative is part of the government’s broader strategy to boost national palm oil production and productivity while reinforcing sustainable plantation governance.
Director General of Plantations Abdul Roni Angkat said the Sarpras program plays a critical role in strengthening the upstream segment of the palm oil industry, particularly for smallholders.
“Through infrastructure and facility support, we aim to ensure that smallholders gain better access to production tools and systems, enabling significant improvements in plantation productivity,” he said, as quoted by Palmoilmagazine.com from the Ministry of Agriculture
The palm oil Sarpras program covers nine types of assistance, including plantation expansion and intensification, post-harvest equipment, processing units, construction and improvement of plantation roads and water management systems, transportation tools, agricultural machinery, market infrastructure, and Indonesian Sustainable Palm Oil (ISPO) certification.
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In 2026, the program is allocated to 125 regional work units across 21 provinces and 104 districts/cities in major palm oil production areas. Local governments are expected to maximize this opportunity by submitting technical recommendations to accelerate productivity improvements among smallholders.
Initial PSR Target Set at 50,000 Hectares
Alongside infrastructure support, the government is accelerating the PSR program as a key strategy to improve productivity and sustainability in smallholder plantations.
The program focuses on replacing aging or unproductive oil palm trees with high-yielding certified seedlings, offering better efficiency and output potential.
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Since its launch in 2017, the PSR program has been implemented in 21 provinces and 148 palm oil-producing districts. For the first phase of 2026, the government has set a replanting target of 50,000 hectares.
As of February 25, 2026, total technical recommendations issued for PSR between 2017 and 2025 have reached 417,008 hectares. In terms of physical progress, land clearing activities have covered 310,138 hectares (around 75%), while planting realization has reached 290,701 hectares (approximately 70%).
Smallholders Control 41% of National Plantation Area
Roni noted that Indonesia’s total oil palm plantation area now exceeds 16.83 million hectares, with around 41% managed by smallholders. This highlights the critical role of smallholder productivity in shaping the future of the national palm oil industry.
However, several challenges remain, including low participation rates among farmers, administrative hurdles such as land legality and aerial mapping requirements, and the need to strengthen farmer institutions.
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“The success of these programs depends heavily on strong collaboration between central and regional governments, businesses, farmer associations, and the farmers themselves,” Roni said.
Meanwhile, Agriculture Minister Andi Amran Sulaiman emphasized the strategic importance of palm oil in supporting Indonesia’s economy, both in terms of export revenues and employment.
“Palm oil is a key commodity that contributes significantly to the national economy. That is why we continue to strengthen support for smallholders through programs that enhance productivity and operational efficiency,” he said.
He added that stronger synergy between central and regional governments will be crucial in accelerating the development of a sustainable, competitive palm oil sector while improving smallholder welfare. (P2)
