The farmers require BPDPKS to make funds available as quickly as possible, but it shouldn\'t abandon its commitment to transparency and accountability. Both farmers and BPDPKS must provide fund accountability report and statement.
To find out more information about the fund disbursed by BPDPKS to farmers, Warta Ekonomi Magazine interviewed BPDPKS President Director Eddy Abdurrachman.
Can you tell me a little bit about reporting and supervision system implemented by BPDPKS related to replanting funds?
Initially, we considered the concept of fund disbursement by BPDPKS to farmers under a government-initiated replanting program was grants. It means we had obligation to only disburse the funds. As long as the funds were received by farmer, our obligation was completed. Nevertheles, when the Audit Board of Indonesia (Badan Pemeriksa Keuangan/BPK) audited in 2019, they demanded a greater accountability report. Now, we have prepared the system and from now on we provide complete report.
What is the main objective of the sytem?
It\'s very clear. We demand farmers to use the funds only for replanting not for other purposes. The fund cannot be used for family business, for example to lend them to other parties.
How do you make sure the system is fully implemented by farmers?
We team up with banks and they will include reporting obligation to their banking system. We have agreement with banks about what we have to fulfill. We don\'t have brances in other cities so that\'s why we partner with banks.
What farmers must do in accordance with the rule and system?
The main objective of the system is to assure that the funds are fully used only for replanting purposes. Bank has obligation to ensure it. For example, when replanting process enter felling and chipping phase, farmers usually work together with contractors as they are incapable to fell and chip oil palm trees by theirselves. Farmers are obliged to show the contract letters to the banks in order to withdraw the money. Bank will verify the letters and then disburse the money.
About the administrative system, what has been implemented?
We demand banks to record all of administrative requirement in their banking system. We have met with the banks to talk about this and we expect to provide a single system. That\'s never been done before. ***