THE GOVERNMENT will accelerate the realization of the People’s Palm Oil Rejuvenation (PSR) program. Support will be provided by increasing PSR funds from previously IDR 30 million per hectare (Ha) to IDR 60 million per Ha. This was done because the rejuvenation targets set were never achieved.
This was conveyed by the Coordinating Minister for Economic Affairs Airlangga Hartarto at the National Coordination Meeting on the National Action Plan for Sustainable Palm Oil Plantations (RAN-KSB) 2019-2024 in Jakarta, Thursday (28/3).
“On average we have only reached around 50 thousand Ha per year and this is less than 30% of the target that the President announced at that time of 180 thousand Ha per year,” he said.
So far, the government has also distributed PSR funds through the Palm Oil Plantation Fund Management Agency (BPDPKS) amounting to IDR 9.25 trillion for a land area of 331,007 Ha. By increasing the amount of rejuvenation funds per Ha that will be carried out, it is hoped that the realization of the PSR program will accelerate in the future.
Airlangga also did not rule out the possibility that the rejuvenation funds would increase in the following years. In the future, these funds can also be used not only to rejuvenate land, but also to fulfill the livelihoods of smallholder oil palm planters.
The government will also reduce the initial requirements for applying for the PSR program from 6 requirements to 3 requirements, simplify the verification process, and shorten the PSR Program application process.
Also read: CPO Production in 2023 Predicted to Increase 7.15%
“The Limited Meeting also discussed the settlement of palm oil in forest areas, so various scenarios have been prepared as mandated by the Job Creation Law,” said Airlangga.
The government was supposed to have stipulated Presidential Instruction (Inpres) 6/2019 concerning the National Action Plan for Sustainable Palm Oil Plantations (RAN KSB) for 2019-2024.
The Presidential Instruction mandates 14 Ministries/Institutions, 26 Provincial Governments of palm oil producing centers, and 217 Regency Governments of palm oil producing centers to implement the RAN KSB program.
Also read: Palm oil consumption in 2024 is expected to increase
The Presidential Instruction consists of 5 components, 28 programs, 92 activities and 118 outputs. The 5 components of the KSB RAN include strengthening data; strengthening coordination and infrastructure; increasing the capacity and capability of growers.
Then environmental management and monitoring, plantation governance and dispute handling, and support for accelerating the implementation of Indonesia Sustainable Palm Oil (ISPO) certification; and increasing market access for palm oil products.
The programs and activities contained in the RAN KSB Presidential Instruction are designed to create conditions that enable growers and business actors to fulfill ISPO certification obligations.
Meanwhile, the realization of ISPO certification following the publication of the RAN KSB Presidential Instruction has cumulatively reached 883 companies and 52 cooperatives/groups of growers. (Mir/Z-7)
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