Sunday, 12 February 2012


            Plantation revitalization of last year, even though it has been attempted by hard work, only 45,035 hectares or 9% of target that has been achieved. While in fact, rejuvenation of farmers? Oil palm and rubber plantations have been urgent as many of the plants have been old and unproductive. While, cacao rejuvenation has been included in the National Cacao Movement, only the second-year maintenance that require plantation revitalization credit. Gamal Nasir, Director General of Plantation of Agriculture Ministry, told Business News.

            The problem of plantation revitalization is the banks which require land certificate, while a major of part of farmers do not have land certificates. Farmers inability to register their land to obtain certification is due to problem of limited fund.

            Other problem is land area which is overlapping with mining area, forestry area, and other. And, Provincial Spatial Planning (RTRWP) which is not yet complete is also a problem. Many regions which are potential for plantation revitalization are hampered by these two problem, Gamal said.

            Technical requirements imposed by banks cause difficulty to farmers. And, the partner company who will become guarantor is facing complicated banking requirements. If the pattern is a non-partnership one where farmers directly requested credit through farmers cooperatives, bank are uninterested.

            Banks consider that plantation revitalization credit, just like other agricultural credits, commonly possesses high risk. There should be a special institution who guarantees credit given to farmers such as in Thailand and France so the banks undoubtedly willing to disburse credit to farmers, he said.

           Plantation revitalization in 2011 reaches 45,000 hectares with total number of farmers of 28,900 household heads and total credit Rp 2.9 trillions. For plantation revitalization in 2012, Rp 19 trillions. For plantation revitalization in 2012, Rp 19 billion dana pengawalan is provided for 147,728 hectare area.

            This year, the Directorate General of Plantation tries to make a breakthrough, namely by making tries to make a breakthrough. Namely by making agreement with the National Land Agency so that land certification for plantation revitalization program can be included in PRONA (national program) for mass certification.

            Banks who have stated their commitment to support plantation revitalization program are required to make general guidelines for all their branches.

            Banks are also asked to willing to finance continued maintenance for farmers being the participants pants of National Cacao Movement. For non-partner-ship program, the government will provide guarantee cost in addition to interest subsidy so that banks will be willing to disburse money without very dependent on business partner.

        General Chairman of Indonesian Palm Oil Association, Joefly J. Bachroeny, stated that at present, businessmen who become guarantors for plantation revitalization are facing very heavy requirements.

            The requirements for plantation revitalization credit were very prudent. There must be a location permit and land certificate. If one of these requirements is not completed, credit will not be disbursed.

            Anizar Simanjuntak, General Chairman of Indonesian Oil Palm Farmers Association urges the government to soon implement mass certification for oil palm farmers at reasonable price. Without this, our discussion on plantation revitalization will be in vain as the basic requirements cannot be fulfilled, she said.    

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