GAPKI Cites Factors that Discourage Oil Palm Smallholders to Join Replanting

The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said that a few factors have discouraged the oil palm smallholders to join the replanting program, which was why the replanting never meets the target.

First, their plantations were included in forest areas because of overlapping regulations.  The replanting program only applies to oil palm plantations excluded from forests; thus, the overlapping condition made them ineligible to join the program.  Second, is the low grant funding for replanting provided by the government which is only Rp30 million per hectare as opposed to the cost of replanting which is around Rp70 million per hectare.

Hence, GAPKI has warmly welcomed the recent decision of the government to double the replanting fund from Rp30 million to Rp60 million per hectare.  In addition, the government has also decided to streamline the application procedures for joining the replanting program from 6 stages to only 3 stages.  “With the increase of funding and easier application procedure, we hope smallholders will be enthusiastic in implementing the replanting program,” Eddy said.