SPKS Urges BPDP to Redirect Palm Oil Funds to Support Flood-Hit Farmers in Aceh and Sumatra

Palm Oil Magazine
SPKS requests urgent deployment of palm oil fund resources to help smallholders rebuild after severe flooding across Sumatra. Photo by: SPKS/Palm Oil Magazine

PALMOILMAGAZINE, JAKARTA — The Palm Oil Farmers Union (SPKS) is calling on the Plantation Fund Management Agency (BPDP) to immediately allocate palm oil funds to support independent smallholders affected by severe flooding in Aceh, North Sumatra, and West Sumatra.

SPKS Chairman Sabarudin emphasized that the scale of the disaster is immense, with at least one million smallholders losing access to their farms and experiencing significant disruptions to their income.

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“When one million farmers are affected, this is far from an ordinary disaster. It demands a swift, well-directed response that prioritizes smallholders,” Sabarudin said in a statement received by Palmoilmagazine.com on Friday (12/12).

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He underscored that the palm oil fund managed by BPDP comes from export levies contributed by farmers and domestic industry players, amounting to around IDR 30–50 trillion annually. Therefore, he argued, it is only fair that the fund be used to support farmers in times of crisis.

“This is about the livelihood and survival of millions of smallholder families,” he stressed.

Sabarudin explained that the flooding across the three provinces has cut off road access, damaged plantations, and disrupted the local economy at the farmer level. Allocating palm oil funds, he added, would be a concrete demonstration of the state’s presence in helping farmers recover.

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He also reminded that more than 90 percent of the palm oil fund has historically been used to support the biodiesel program, which largely benefits large companies. In a disaster situation like this, he said, it is time for the fund to be allocated more equitably for the benefit of smallholders.

“Farmers cannot be left to shoulder this burden alone,” he added.

Sabarudin concluded by urging that the fund distribution be carried out swiftly, transparently, and in collaboration with farmer organizations to ensure the assistance reaches those who need it most. (P3)

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