JakartaPost-Feb 28, 2024
The government has doubled the funding for an oil palm replanting program aimed at improving farmers’ livelihoods in response to low uptake. The claimable amount was increased from Rp 30 million (US$1,908) per hectare to Rp 60 million. In a press release issued by the Presidential Secretariate on Tuesday, Coordinating Economic Minister Airlangga Hartarto said the increase was expected to support farming communities. The rejuvenation of oil palm trees is aimed at increasing plantation productivity, with the funds intended to help farmers overcome a financial squeeze as they wait for new plants to yield crops. Academic papers and discussions with farmers regarding replanting have shown that the trees can only bear fruit in the fourth year. Therefore, if the funding is Rp 30 million [per hectare], it can only cover their living costs for the first year,” Airlangga said. With the additional funds, farmers are also expected to plant other crops while the oil palm replanting is ongoing. Airlangga added that the Smallholder Palm Oil Rejuvenation (PSR) program had been rolled out on 53,012 ha in 2023, marking a 72 percent increase over 2022, when 30,759 ha of land were replanted. A total of Rp 1.5 trillion in PSR funds was distributed to 21,020 farmers last year. More than 2 million ha of oil palm plantations across Indonesia are deemed due for rejuvenation. Read more at:
https://www.thejakartapost.com/business/2024/02/28/govt-doubles-funds-for-oil-palm-replanting.html.
