Airlangga Hartarto: Government Proposes Increase in SRP Fund to Rp 60 Million per Hectare

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Coordinator Minister of Economy Airlangga Hartarto highlighted key points regarding the SRP. Photo by: Special

PALMOILMAGAZINE, JAKARTA – The Indonesian government continues to promote the Smallholders Replanting Program (SRP) as part of its efforts to enhance plantation productivity and quality.

In 2023, the SRP covered approximately 53,012 hectares, marking a significant increase of 72.35% compared to the previous year, which covered about 30,759 hectares. The SRP fund for the same year amounted to approximately Rp 1.5 trillion, benefiting 21,020 smallholders.

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During a press conference at the Presidential Palace Complex on Tuesday (27/02/2024), Coordinator Minister of Economy Airlangga Hartarto highlighted key points regarding the SRP. He mentioned that the program’s realization fell short of the target, achieving only about 30% of the planned 180,000 hectares. Hartarto identified one major obstacle as the regulatory process for smallholders to access the SRP.

Also Read: Indonesian Government Addresses ISPO Certification Challenges for Smallholders: Airlangga Hartarto Proposes Fund Assistance and Regulatory Adjustments

They got SRP fund about Rp 30 million per hectare in the first year within maximal plantations 4 hectares. The second year and the rests, they should take advantages on kredit usaha rakyat (KUR) within maximal loan up to Rp 500 million and 6% interest rate per year.

After realizing these, it was proposed to escalate SRP fund to be Rp 60 million for plantation nursery, intercrops, development, until their plantations deliver fresh fruit bunch within the total cost up to Rp 10,8 trillion.

This was from the academic study and communication with many planters that said Rp 30 million would be enough for living costs in the first year of SRP.

Besides, the government through Palm Oil Plantation Fund Management Agency is preparing the scholarship program to get reliable human resources in palm oil industries, just as same as what the industries are facing and sustainable principles.

He also emphasized it needs to solve the issues about ‘too late’ plantations for the smallholders and TORA (Tanah Objek Reforma Agraria) immediately. (T2)

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