PALMOILMAGAZINE, JAKARTA – Sabarudin, Chairman of the Serikat Petani Kelapa Sawit (SPKS), welcomed the government’s decision to increase the smallholders’ replanting fund (SRP) to Rp 60 million per hectare. He noted that this amount aligns with SPKS’s calculations, emphasizing that the previous allocation of Rp 30 million per hectare was insufficient for effectively implementing the SRP.
“In our organization, we have calculated and proposed that increasing the fund to Rp 60 million would be adequate,” Sabarudin said in an interview with Palmoilmagazine.com on Wednesday, September 18, 2024.
However, Sabarudin highlighted that increasing the fund is not the only challenge smallholders face. He pointed out that accessing the fund remains difficult due to complex terms and conditions. “There are two major issues for smallholders: area status and recommendations from relevant ministries,” he explained.
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The first issue involves obtaining a recommendation from the Ministry of Agrarian Affairs and Spatial/National Land Agency, even if the smallholders hold a freehold title. Additionally, their land must be re-measured and verified to ensure it is not classified as forest area or overlapping with another company’s business rights.
“The next one is the recommendation from Ministry of Environment and Forestry that stated the area should not be categorized as peat or forest region,” he said. The area verification, he continued, would slow down the smallholders to get SRP.
He also urged the government to revise the Regulation of Minister of Agriculture Number 3 about SRP. He thought the revision would be the need to simplify the procedures for the smallholders namely about area condition. He also suggested the area verification should be in simple system, such as, declaration from the smallholders, or having consultation with the local plantation agency, without involving Ministry of Agrarian Affairs and Spatial/National Land Agency or Ministry of Environment and Forestry.
Prior, the government through Palm Oil Plantation Fund Management Agency (PFMA) officially increased the SRP fund to be Rp 60 million per hectare. This would be effective per 1 September 2024. It was regulated by the Decision of Director of PFMA Number Kep-252/Dpks/2024 to accelerate SRP namely for the smallholders. It was decided after having meeting with PFMA Steering Committee in July and August 2024.
The increasing SRP fund would deliver new hopes for the smallholders when facing the challenges to maintain their plantation productivity and increase their welfare. But for it would be difficult to get the fund, the policy revision should be immediately conducted to ease them to realize the significant program. (P2)
