Indonesian Political, Business & Finance News

PTPN and Perhutani Commit to Eradicating Extreme Poverty in Jember

| | Source: REPUBLIKA Translated from Indonesian | Social Policy
PTPN and Perhutani Commit to Eradicating Extreme Poverty in Jember
Image: REPUBLIKA

PT Perkebunan Nusantara (PTPN) and Perum Perhutani have expressed readiness to collaborate with the Jember Regency Government to eradicate extreme poverty in Jember, East Java. Coordinator Manager of the Jember Estate Region PTPN I Regional 5, Benny Hendricrianto, acknowledged that extreme poor communities still reside around the plantations. “We agree that it is impossible for us to solve this alone. PTPN is ready to synergise and collaborate with Jember’s priority programmes,” said Benny in a press release during a discussion titled “Portrait of Extreme Poverty on State Land, Who is Responsible?” held at the University of Jember on Monday (13/4/2026). According to Benny, PTPN has already implemented several efforts to address poverty in Jember. PTPN has conducted home renovations for poor residents, held affordable markets, and participated in stunting prevention alongside the Jember Regency Government. PTPN runs a Social and Environmental Responsibility (TJSL) programme providing capital access to cattle farmers in Jember through partnerships with Himbara banks. “We provide TJSL for farmers with very low interest, only three percent. We have allocated nearly Rp 28 billion for around 2,800 farmers. We hope this can boost the economy,” he stated. PTPN also has operational cooperation schemes (KSO) with private parties, allowing extreme poor residents in plantation areas to work on these projects, as hoped by Jember Regent Muhammad Fawait. Currently, PTPN has a sugarcane KSO in Mumbul Estate, Jember, to increase sugarcane production supporting sugar self-sufficiency. There is also a maize KSO in Jember to support food security programmes. In line with PTPN, Perum Perhutani is also ready to work with stakeholders to eliminate the extreme poverty rate in Jember, which is the highest in East Java. Head of Perum Perhutani East Java, Wawan Tri Wibowo, stated that Perum Perhutani will oversee the Ministry of Forestry’s social forestry programme to ensure it is on target. This programme opens opportunities for extreme poor residents to manage forest land, thereby gaining economic benefits. Additionally, Perhutani will provide guidance to programme recipients so they have the knowledge to manage the land, avoiding indiscriminate tree felling to plant other crops. Wawan revealed that around 36,000 hectares of forest area in Jember will be converted for the social forestry programme. “The issue is whether access is given appropriately to those in need? This is what we must oversee going forward, whether it truly benefits communities around the forest who are indeed farm labourers,” said Wawan. Besides overseeing the social forestry programme, Perum Perhutani has undertaken several initiatives to improve community welfare in Jember. Perhutani also partners with communities to manage tourist sites in forest areas. “Perhutani is open, ready to provide access, and support the Regent’s programmes in enhancing community welfare,” he added. Jember Regent Gus Fawait is confident that the social forestry programme can address extreme poverty within one to two years, provided it is targeted correctly. From the 36,000 hectares of social forest land, Fawait hopes each hectare is managed by one extreme poor family. Thus, there will be 36,000 families exiting the extreme poverty category. To oversee the programme, the Jember Regency Government is ready to provide training to extreme poor residents who will receive the land. The Regency Government will also provide seed assistance after residents receive the forest land. Professor of Sharia Institutional Economics at the Faculty of Economics and Business, University of Jember, Prof Ahmad Zainuri, reminded that extreme poverty partly arises because stakeholders operate independently to tackle poverty. Therefore, Zainuri hopes that stakeholders can now move together to resolve this poverty issue.

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