Community and MSMEs (Micro, Small, and Medium Enterprises)

Improving the welfare of palm oil farmers and supporting the growth of palm oil-based SMEs by providing access to training, business mentoring, and financing. Through this initiative, plantation communities and SMEs are expected to achieve greater economic independence and enhance their competitiveness within the palm oil industry ecosystem

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Legal Basis

This program is based on several key regulations, including:

  • Presidential Regulation No. 132 of 2024 – Allows BPDP funds to support community programs, farmer empowerment, and the development of palm oil-based SMEs.
  • Minister of Finance Regulation No. 49/PMK.05/2018 – Regulates the use of BPDP funds for social and economic support programs in plantation communities.
  • Minister of Cooperatives and SMEs Regulation No. 2 of 2019 – Establishes financing and assistance schemes for SMEs in the plantation sector.
  • Director General of Plantations Decree No. 521/Kpts/KB.410/2021 – Provides technical guidelines for farmer and SME empowerment programs in the palm oil sector.

Program Objectives

This program is designed to:

  • Improve Community Welfare – Support small farmers and plantation communities to enhance productivity and income.
  • Strengthen Palm Oil-Based SMEs – Foster the growth of small and medium enterprises utilizing palm oil as raw material.
  • Boost Local Economic Independence – Build a sustainable economic ecosystem by improving access to financing and markets.

Program Scope

The Community and SME Development Program covers the following areas:

1. Farmer and Community Empowerment

  • Training and technical assistance for smallholder farmers.
  • Access to essential agricultural inputs like fertilizers, high-quality seeds, and farming equipment.

2. Support for Palm Oil-Based SMEs

  • Financial assistance for SMEs engaged in palm oil processing (e.g., cooking oil, palm-based cosmetics, and bioenergy).
  • Business development training and technical support.

3. Market Access and Partnership Development

  • Facilitating partnerships between farmers, cooperatives, and palm oil industry players.
  • Promoting and branding palm oil-based SME products for national and global markets.

4. Social and Community Infrastructure Programs

  • Development of public facilities in plantation areas (e.g., roads, schools, healthcare centers).
  • Social responsibility programs for communities affected by the palm oil industry.

Program Participation Mechanism

To participate in BPDP’s Community and SME Development Program, the following steps must be followed:

  1. Proposal Submission or Registration
    • Farmer groups, cooperatives, or SMEs submit proposals detailing business plans, funding needs, and expected social and economic impacts.
  2. Evaluation and Verification
    • BPDP, in collaboration with relevant agencies, assesses proposals based on their potential impact and feasibility.
  3. Beneficiary Selection
    • Approved proposals receive funding and enter into cooperation agreements with BPDP.
  4. Program Implementation
    • Funds are disbursed according to agreements, including technical assistance and partnership facilitation.
  5. Monitoring and Evaluation
    • BPDP oversees program effectiveness, ensuring that financial assistance enhances farmer welfare and SME growth.

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