PLANTATION FACILITIES AND INFRASTRUCTURE

Crucial role in developing Indonesia's palm oil plantation infrastructure through the Infrastructure and Facilities Program. This initiative aims to enhance productivity, efficiency, and sustainability in the national palm oil industry

Array

Legal Basis

The implementation of this program is based on several regulations, including:

  • Minister of Finance Regulation No. 49/PMK.05/2018: Governs the use of funds for palm oil plantation infrastructure by BPDPKS.
  • BPDPKS Director General Regulation No. 8 of 2021: Establishes procedures for fund allocation and utilization for palm oil plantation infrastructure.
  • Director General of Plantations Decree No. 273/Kpts/HK.160/9/2020: Provides technical guidelines for palm oil plantation infrastructure development within the BPDP funding framework.

 

Program Objectives

This program is designed to:

  • Increase Productivity: By providing adequate infrastructure, such as access roads and irrigation systems, to support plantation operations.
  • Support Sustainability: Encouraging environmentally friendly plantation practices through waste processing facilities and natural resource conservation.
  • Improve Farmers' Welfare: Facilitating farmers' access to production facilities and markets, thereby enhancing their income and quality of life.

 

Program Scope

The Infrastructure and Facilities Program covers several key activities, including:

  • Construction and Rehabilitation of Infrastructure: Development of plantation roads, bridges, and other supporting facilities to improve the distribution of harvested crops.
  • Irrigation System Development: Provision and improvement of irrigation channels to ensure adequate water supply for palm oil plantations.
  • Provision of Processing Facilities: Establishment of processing units for harvested products and waste management to add value and promote environmental sustainability.

 

Fund Distribution Mechanism

Funding for this program follows several stages:

  1. Proposal Submission: Farmer groups or cooperatives submit proposals detailing their infrastructure development plans to BPDP.
  2. Evaluation and Verification: BPDP, together with relevant agencies, evaluates and verifies the feasibility of submitted proposals.
  3. Determination of Fund Recipients: After passing the evaluation, BPDP designates fund recipients and formalizes agreements.
  4. Fund Disbursement: Funds are allocated in stages based on the progress of implementation in the field.
  5. Monitoring and Evaluation: BPDP conducts supervision and assessment to ensure that funds are used appropriately and that the activities proceed as planned.

Through the implementation of the Infrastructure and Facilities Program, BPDP is committed to supporting the development of a competitive, sustainable, and farmer-benefiting palm oil industry in Indonesia.

RELATED POSTS