SMALLHOLDERS' PALM OIL REPLANTING

Improving the welfare of smallholder palm oil farmers in Indonesia by rejuvenating aging and unproductive oil palm plantations. This program focuses on replanting oil palm trees on plantations that are over 25 years old or have low productivity to enhance yields and improve the quality of palm oil production

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Objectives of the PSR Program

The Smallholders' Palm Oil Replanting Program (PSR) aims to:

  • Increase Productivity: Replace aging oil palm trees with high-quality, more productive seedlings.
  • Improve Farmers’ Welfare: By rejuvenating plantations, smallholder farmers can enhance their harvest and income.
  • Enhance Indonesia's Palm Oil Industry Competitiveness: Increased productivity will make Indonesia’s palm oil sector more competitive in the global market.
  • Reduce Environmental Impact: Replanting aims to minimize the negative effects of unproductive plantations, such as the expansion of new land clearing.

BPDPKS Support

BPDPKS supports the PSR program by providing a grant of IDR 60 million per hectare for replanting costs. This funding covers all necessary expenses, including the purchase of superior seedlings, plantation maintenance, and post-planting care.

PSR Program Procedure

Farmers or farmer groups wishing to participate in the program must meet specific administrative and technical requirements set by BPDPKS. Once these requirements are fulfilled, BPDPKS will conduct a field verification and disburse the grant funds. This process ensures that the replanting is carried out properly and in accordance with established standards.

Benefits of the PSR Program

  • Increased Farmers' Income: With more productive crops, smallholder farmers can achieve higher yields and better-quality harvests.
  • Improved Palm Oil Product Quality: The superior seedlings planted in this program will produce better-quality palm oil, ultimately enhancing the value of palm oil derivatives.
  • Environmental Sustainability: Rejuvenating plantations can help reduce uncontrolled land conversion and promote the adoption of more sustainable agricultural practices.

Future Direction

BPDPKS continues to expand the reach and impact of this program by increasing grant allocations per hectare and ensuring the smooth implementation of the PSR program through collaboration with local governments, financial institutions, and other stakeholders. The program is also being developed to include more smallholder farmers, aiming for the sustainable growth of the entire smallholder palm oil sector.

Through the PSR program, BPDPKS is committed to driving positive change in Indonesia’s palm oil industry, ensuring both farmers' prosperity and environmental sustainability.

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