Replanting Program Covers 30.000 Hectares of Riau's Oil Palm Plantations

26/01/2018 10:21:39

PEKANBARU - Riau Governor Arsyadjuliandi Rachman said at least 30,000 hectares of smallholders' oil palm plantations would be included in the program of replanting to be carried out by phases in the province this year.

The government would provide aid for the program to improve the productivity of the oil palm plantations of the farmers, the governor said here on Saturday.

"This is our target and it has been coordinated with the central government and a number of related agencies at an economic meeting, headed by Coordinating Minister for Economy Darmin Nasution in Jakarta on Friday," Rachman said in a news release.

He said that the central government has agreed to provide a grant of Rp25 million for the replanting of hectare, and a farmer family could have a maximum aid of Rp100 million or for 4 hectares.

Thefund aid is to finance the cutting of old trees and clearing of the lands, to purchase seedlings and replanting. The government will also seek off taker company to be responsible for the success of the replanting program.

For Riau there have been off taker companies including state-owned plantation company PTPN V, Asian Agri and Sinar Mas Agro. The off taker companies will guarantee that the farmers would have good seedlings with certificate.

The government hopes that the program would contribute to increasing the country's production of crude palm oil.

The provincial administration will ask banks to provide credits  for the farmers when the plants have been a year old, the governor said.

"The farmers would need the fund to do other business and support their families before their oil palm trees begin to be productive," he said.

The first phase of the replanting program would cover 12,000 hectares of the target of 30,000 hectares. The first phase of the replanting with recommendation from the Plantation Directorate General, will include plantations in Rokan Hulu, Rokan Hilir, Pelalawan, Siak and Kuantan Singingi and Kampar.

The governor said Riau is a national priority under the replanting program as the province has large plantations that need replanting reaching 96,852 hectares.

"If everything goes right, in three to four year the replanting program could be wrapped up in Riau," he added.