Bisnis Indonesia, 14 December 2018
The Indonesian Oil Palm Estate Fund (BPDPKS) has only disbursed Rp390 billion replanting fund for smallholders as of November 2018, or 7.8% of this year’s budget of Rp5 trillion. BPDPKS Fund Collection Director Hendrajat Natawijaya said the association had disbursed the fund to 50 plantations group comprising 7,121 oil palm farmers that run 15,600 hectares of oil palm plantations. He explained that the program met several problems during its initial run because the government hadn’t initiated such kind of program before.
One of the problems is that many smallholders do not have land certificate of their plantations. Hendrajat said BPDPKS planned to prepare additional fund to help smallholder plantations receive land certificates next year.