PTPN IV Implements Record-Breaking Smallholders Replanting Program (SRP) in North Sumatera

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Director of Marketing, PTPN III (Persero), Dwi Sutoro. Photo by: Special

PALMOILMAGAZINE, LANGKAT – PT Perkebunan Nusantara (PTPN) IV, a subsidiary of Subholding Perkebunan PTPN III (Persero), implemented a smallholders replanting program (SRP) in Koperasi Unit Desa (KUD) Tani Makmur, located in Bukit Mas Village, Besitang Subdistrict, Langkat Regency, North Sumatera Province.

Covering 107 hectares of palm oil plantations, this SRP initiative set a national record for the fastest cutting and planting process, following technical recommendations and funding from the Palm Oil Plantation Fund Management Agency (PFMA).

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“We are grateful to have successfully conducted the SRP for members of KUD Tani Makmur. This achievement marks a record for the fastest cut and plant process post-technical recommendation from the Ministry of Agriculture,” remarked Jatmiko Santosa during his address to hundreds of smallholders and regional agency leaders in Langkat Regency on Wednesday, June 19, 2024.

Also Read: PTPN IV Replanting Program Successfully Boosts Productivity of Smallholders Oil Palm Plantations in Riau

Less than a week after the technical recommendation was published, the company encouraged to accelerate the signing of memorandum of understanding among the cooperation, PFMA, and financial institution. “Not only fast, we want it successful in partnership between the plasma smallholders and the company which has been proven to be successful in Riau Province. This could be expanded through off-taker system for non-plasma smallholders, such as in Besitang, Regency of Langkat,” Jatmiko said, as quoted from Berita Satu.

Since 2019, PTPN has been starting to get partnership system which become the role mode in Indonesia. Through region III (PTPN V at the time) in Riau Province, the company launched for programs. One of them was single management partnership. It started from SRP to the plantation producing harvest age. PTPN would directly do every cultivation. The developed smallholders that used the system could produce in the first year – productive trees that reached up to 18 tons of fresh fruit bunch (FFB)/hectare/year. The numbers were more than those in national scale. With the monthly income between 5 to 7 million rupiah. The cooperation also got balance up to tens of billion and could expand, accelerate the fund to develop their plantations.

Jatmiko hoped, the success of PTPN’s plasma smallholders would be imitated for other non-plasma ones through off – taker system that would not be as smallholders’ production buyers, but also would develop them in technic and development sustainably. “We hope that by the single management and SRP fund helps from PFMA that reach up to Rp 60 million per hectare, many companies would get their own SRP by taking advantages on off – taker system and SRP would get expansion and acceleration,” he said.

Director of Marketing, PTPN III (Persero), Dwi Sutoro said that the company is committed to develop the smallholders’ cooperation. “With the institution, such as, KUD, we hope that corporatization would deliver additional values to be the foundation to have smallholders’ plantation sustainability in the future,” Sutoro said.

PalmCo, subholding PTPN IV that focuses on palm oil should help the smallholders in implementing SRP for about 60 thousand hectares until 2026, as part of national strategic program.

Director of Plantation Protection, Ministry of Agriculture, IHendratmojo Bagus Hudoro that attended the event, appreciated the fast cut off and plant in SRP process after getting technical recommendation. “By the early of June, the cooperation got technical recommendation, in the midst of June, there has been SRP. This is proof of communication and collaboration effectively among the smallholders, the cooperation, and the company with related instance. Hopefully, this could be done and SRP would get wider to be implemented,” Hudoro said.

Governor in duty of North Sumatera, Hassanudin really appreciated PTPN IV PalmCo. “We do appreciate PTPN IV PalmCo for being the partner as off taker in SRP for smallholders and cooperation in Langkat. Hopefully, the same thing happens in other smallholders’ plantations,” he said. (T2)

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