PALMOILMAGAZINE, DELI SERDANG – The Indonesian Government continues to implement the Smallholders Replanting Program (SRP) as a strategic initiative to enhance both the quantity and quality of palm oil plantations in the country. Introduced by President Joko Widodo in October 2017, the primary objective of the program is to enhance the governance of palm oil plantations.
Under this program, each smallholder is eligible to receive financial assistance of Rp 30 million per hectare in the initial year, with a maximum limit of 4 hectares. In the subsequent years, they are entitled to access “kredit usaha rakyat” (KUR) with a maximum loan amount of Rp 500 million, featuring an annual interest rate of 6%.
“In national scale, the fund to prepare in KUR would be Rp 280 trillion. Actually, there is no reason not to realize SRP,” Coordinator Minister in Economy, Airlangga Hartarto said, as in the official statement to Palmoilmagazine.com, Friday (26/01),
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By 2023, SRP positively delivered impacts for 142.078 smallholders, the fund reached Rp 9,11 trillion and the total SRP covered 326.678 hectares. The government would reinforce the program so that the smallholders would get more advantages.
He directly interacted with smallholders that got SRP helps, listened to their aspiration, and solved what they faced. The government delivered easiness to get KUR through Bank Sumut for the smallholders through Koperasi Pemasaran Mitra Petani Mandiri within limited fund Rp 25 million per hectares within interest rate 6%.
Airlangga hoped SRP would be the successful sample within transparent process, including clear and clean terms and conditions, title documents for those having areas. The government is reviewing too late areas that develop palm oil plantations in forest regions to get solution.
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In the event in Village of Sialang, District of Deli Serdang, North Sumatera Province, Minister Airlangga symbolically handed over SRP fund for about Rp 7,38 billion for 116 smallholders. SRP was welcome by them and hoped to escalate palm oil product competition from Indonesia in the local and global – scale markets.
While questioned by some journalists, he also emphasized that the smallholders’ aspiration would be the basic to escalate effectiveness and realization for the future SRP. It would deliver not only financial benefits but also would encourage sustainable development and smallholders’ welfare in Indonesia. (T2)
