PalmCo boosts Kampar blacksmith production tenfold

Jakarta (ANTARA) - State-owned enterprise PTPN IV PalmCo, through its Social and Environmental Responsibility (TJSL) programme, has assisted in boosting the production capacity of the blacksmith centre in Teratak Village, Kampar Regency, Riau, by up to tenfold. Artisans who previously produced on a limited scale are now able to generate up to 30,000 plantation tools per month, a significant increase from around 3,000 units before. “We are encouraging the creation of a self-reliant economic ecosystem, while opening up employment opportunities and adding value for the surrounding community,” said PTPN IV PalmCo President Director Jatmiko Santosa in a statement from Jakarta on Sunday. He stated that the company’s TJSL programme is designed to create sustainable impacts for communities around its operational areas. According to him, the partnership with the blacksmith business group in Kampar is also part of efforts to strengthen a more inclusive plantation industry supply chain. Chairman of the Mola Maju Basamo business group, Desrico Apriyus, said the capacity increase is supported by product absorption by the company, business mentoring, and assistance with equipment and capital. He noted that the turning point for the business occurred in 2020 during the COVID-19 pandemic, which pressured economic activities, but the group survived and later developed after receiving ongoing support. “At that time, almost all sectors were affected. However, we were still able to survive because PTPN absorbed our products while providing mentoring,” Desrico said. In addition to absorbing products, PalmCo has also provided capital support through a partnership programme worth Rp800 million, which was used to consolidate small workshops into one more organised production centre. Desrico explained that the business changes are not only evident in the production scale but also in the work processes, which now increasingly rely on technology. Most recently, PalmCo has provided equipment assistance worth hundreds of millions of rupiah in the form of an air hammer and automatic grinder to improve efficiency as well as production capacity. With this support, the blacksmith centre is now equipped with several modern machines, including four air hammer units, which help accelerate the production process and maintain product quality. This capacity increase has begun to impact job absorption in the village. The number of workers, which was initially just a dozen, has now increased to 23 people. The business group targets the number of workers to increase again to 33 people, even up to 50 people in the near future. In addition, around 100 village youths are also involved as marketing partners, so the economic impact of the business is not only felt in the production workshop but also in the trading activities of the surrounding community. Desrico mentioned that the increase in efficiency and production capacity has also boosted workers’ incomes. On average, workers now earn around Rp7 million per month, with the potential to increase to Rp10 million to Rp15 million as production efficiency continues to improve. In addition to expanding the business scale, the development of this blacksmith centre is also seen to have multiplier effects in the form of increased village economic activity and strengthened social cohesion in the community, as some of the business profits are allocated to social activities in the local environment.