Palm Oil Boss Proposes Living Cost Support for Smallholder Farmers During Estate Rejuvenation

Jakarta – The chairman of the Indonesian Palm Oil Producers Association (Gapki), Eddy Martono, has proposed that palm oil farmers receive living cost support whilst undergoing estate rejuvenation or replanting. The proposal was presented to Agriculture Minister Amran Sulaiman during a meeting discussing the condition of Indonesia’s palm oil industry.

Eddy explained that one of the main obstacles to the Smallholder Palm Rejuvenation programme (PSR) is farmers’ unwillingness to fell their productive palm trees. He noted that many farmers fear losing their income source during the waiting period until new plants resume production.

“I conveyed to the Minister earlier that this issue isn’t merely about permits—it’s actually that sometimes farmers are reluctant. For example, at current Fresh Fruit Bunch (FFB) prices of Rp3,000 per kilogramme, they don’t want to cut their trees,” Eddy stated during a press conference at the Agriculture Ministry office in Jakarta on Wednesday (11 March 2026).

According to him, this concern is regularly expressed directly by farmers when asked to rejuvenate their plantations.

“They ask, ‘What will I eat if I cut down my trees?’,” he said.

For this reason, Eddy believes a solution is needed to ensure farmers maintain income during the replanting waiting period. He proposed establishing a temporary living cost guarantee for farmers whilst waiting for new palm trees to start producing.

“This is what we need to find a solution for. How? While waiting… palm now matures quite quickly, producing in 2.5 years. So ideally, we should establish a living guarantee, in addition to intercropping arrangements for example,” he explained.

He stated that the proposal has been presented to Agriculture Minister Amran Sulaiman and will be discussed further as part of efforts to accelerate the Smallholder Palm Rejuvenation programme.

“I presented this proposal, and he agreed, so we will discuss it to ensure our production can increase far more than it currently does,” Eddy said.

According to him, addressing farmers’ income during the waiting period is crucial for the smallholder palm rejuvenation programme to run more quickly.

“To be honest, farmers haven’t made a formal proposal. But I can see here that they definitely won’t be willing—they certainly ask ‘how will I eat?’, that’s how it goes. That’s what we must solve together,” he concluded.