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Govt doubles funds for oil palm replanting
The government has doubled the funding for an oil palm replanting program in response to low uptake. The funds are aimed at improving farmer livelihoods.
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A bamboo raft serves as a makeshift ferry on Feb. 25, 2024, at an oil palm plantation in Pulau Tigo district, Muaro Jambi regency, Jambi. (Antara/Wahdi Septiawan)
T
he government has doubled the funding for an oil palm replanting program aimed at improving farmers’ livelihoods in response to low uptake.
The claimable amount was increased from Rp 30 million (US$1,908) per hectare to Rp 60 million.
In a press release issued by the Presidential Secretariate on Tuesday, Coordinating Economic Minister Airlangga Hartarto said the increase was expected to support farming communities.
The rejuvenation of oil palm trees is aimed at increasing plantation productivity, with the funds intended to help farmers overcome a financial squeeze as they wait for new plants to yield crops.
Read also: Experts cautious on palm oil-fueled aircraft
"Academic papers and discussions with farmers regarding replanting have shown that the trees can only bear fruit in the fourth year. Therefore, if the funding is Rp 30 million [per hectare], it can only cover their living costs for the first year," Airlangga said.
With the additional funds, farmers are also expected to plant other crops while the oil palm replanting is ongoing.
