Rejuvenation of People's Oil Palm Plantations Always Below Target

The Indonesian government's palm oil replanting program has consistently fallen short of its targets for three consecutive years. In 2017, only 14,790 hectares (71%) of the 20,780-hectare target were replanted. In 2018, 33,800 hectares (18%) were replanted out of a target of 185,000 hectares. From January to October 2019, only 68,400 hectares (38%) of the 180,000-hectare target were replanted; this target had been revised downwards from an initial 200,000 hectares.

To improve the welfare of farmers and the productivity of smallholder palm oil plantations, the government implemented a replanting program. Of the total 5.6 million hectares of smallholder palm oil plantations, 2.4 million hectares require replanting due to the age of the trees, resulting in decreased and, in some cases, zero productivity.

However, the government's efforts have faced numerous obstacles. Incomplete administrative requirements, such as proof of land ownership and the absence of land disputes, are among the obstacles hindering the issuance of recommendations from the Directorate General of Plantation of the Ministry of Agriculture. To accelerate the replanting program, the government has reduced the application process to 9-10 days from the previous 27 days. The application process can also be done online, increasing transparency. For information, the replanting fund from the Indonesian Palm Oil Plantation Fund Management Agency (BPDP-KS) amounts to Rp 25 million/hectare, sourced from palm oil levies.