PALMOILMAGAZINE, ACEH UTARA – The plantation facilities and infrastructure program managed by the Plantation Fund Management Agency (BPDP) was designed to strengthen the business foundation of independent oil palm smallholders through support ranging from seeds, fertilizers, transport equipment, agricultural machinery, and estate roads to water management systems.
From 2020 through the end of 2025, total disbursement under the program reached Rp200.64 billion. However, many smallholders say access to the scheme remains difficult, with long procedures, layered administrative requirements, and years of assistance often needed before proposals can enter the formal application stage.
This challenge is reflected in the experience of the Oil Palm smallholders Union (SPKS) in North Aceh. SPKS North Aceh Chairman Abubakar AR recently accompanied the submission of a plantation road improvement proposal at the facilities division of the North Aceh Plantation and Livestock Office. The application was submitted through the Berkat Bunga Damai Plantation Producers Cooperative to the Directorate General of Estates..
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The proposed project is significant in scale. If approved, it would benefit at least 345 independent oil palm farming households managing a combined plantation area of around 780 hectares. The proposed locations cover four villages: Cot Girek in Cot Girek District, as well as Seureuke, Lubok Pusaka, and Buket Linteung in Langkahan District, North Aceh.
According to Abubakar, bringing the proposal to government authorities required considerable time, energy, and financial resources. Assistance efforts lasted more than two and a half years, starting with farmer outreach, plantation mapping, document collection, and land legality verification.
“We are serious about carrying out our role as a smallholders ’ institution. From data collection and gathering documents such as identity cards, family cards, land legality papers, to plantation documentation, everything was done together with our field team,” Abubakar said in an official statement received by Palmoilmagazine.com.
He said the lengthy submission process remains a major obstacle for independent smallholders , who often have limited administrative capacity and technical support. At the same time, infrastructure needs in farming areas have become urgent.
Production roads in several smallholder palm oil centers in North Aceh are reported to be severely damaged and have gone without repairs for years. The condition directly affects smallholders ’ ability to transport fresh fruit bunches (FFB) to palm oil mills, reducing distribution efficiency and cutting farm income.
“Almost all plantation roads are badly damaged. Smallholders are struggling to move their harvest,” he said.
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The North Aceh case illustrates that while the BPDP infrastructure program is already operating, access to its benefits still needs to be widened and simplified so it can truly reach smallholders on the ground. For independent smallholders, infrastructure support is not merely physical assistance, but a key factor in maintaining productivity, lowering logistics costs, and improving household welfare.
SPKS North Aceh is therefore urging the Directorate General of Estates and BPDP to give serious attention to the proposal while also reviewing the distribution mechanism so it becomes more inclusive, simpler, and faster for independent smallholders who genuinely need support. (P2)
