Agrinas Palma Partners with RSI to Accelerate PSR Programme

Jakarta (ANTARA) - PT Agrinas Palma Nusantara, in collaboration with Rumah Sawit Indonesia (RSI), is working to accelerate the Perkebunan Sawit Rakyat (PSR) programme to enhance the productivity of smallholder palm oil plantations, which currently lags behind large private estates and state-owned enterprises (BUMN). The Chief Executive Officer of PT Agrinas Palma Nusantara, Mohammad Abdul Ghani, stated that the productivity of smallholder palm oil plantations remains very low at an average of 2.6 tonnes of crude palm oil (CPO) per hectare per year. In contrast, large private estates achieve 3.4 tonnes of CPO per hectare per year, while BUMN plantations reach 4.8 tonnes of CPO per hectare per year. “The low productivity of smallholder palm oil is partly due to the low realisation of the PSR programme. With smallholder palm oil plantations covering 42% of the total area, the national palm oil productivity is also low,” said Ghani in his statement in Jakarta on Tuesday. In response, Agrinas Palma and RSI have signed a Memorandum of Understanding (MoU) aimed at building synergy to increase the capacity of palm oil farmers, making smallholder plantations more productive and elevating them to industry level. The MoU was signed by Agrinas Palma CEO Mohammad Abdul Ghani and Yunita Sidauruk, representing RSI General Chairman Kacuk Sumarto, during a Limited Discussion Forum (FDT) themed “Accelerating Smallholder Palm Oil Rejuvenation as a Step to Bring Farmers into the Industrial Era”. Abdul Ghani stated that through this cooperation, the institutional capacity of palm oil farmers will be enhanced to boost national palm oil production via equitable partnerships where companies and farmers stand side by side. The offered partnership, he added, follows the concept of integrated single management so that farmers who have paid off their debts are not left alone, ensuring proper management of their gardens. Regarding the Smallholder Palm Oil Rejuvenation (PSR), RSI General Chairman Kacuk Sumarto said that the government programme serves as the main instrument to rapidly and measurably increase productivity; when farmers enter the industrial level, high productivity is key. “Replanting ageing plantations has the potential to significantly increase yields while reducing production costs and improving long-term efficiency,” he said. He noted that Agrinas and RSI adhere to the principle of growing together with farmers, as smallholders represent 42% of Indonesia’s total palm oil plantations, making them highly strategic for achieving the 8% economic growth target set by the President. Kacuk expressed hope that this farmer partnership cooperation would serve as a role model for partnership patterns in Indonesia’s palm oil industry.