PISAgro enters MoU with BPDP-KS (Indonesian Palm Oil Estate Fund) for Facilitating Finance to Support Replanting Program
As pathways to scaleup, PISAgro signed a MoU On May 2nd, 2017 in Jakarta, with BRI**), BRI Agro and BPDP-KS (Indonesian Oil Palm Estate Fund) to support smallholder farmers for replanting program. All stakeholders agreed to support 750 farms for 12 months covering 1,500 ha.
The MoU will engage PISAgro through the Palm Oil working group in facilitating farmers access to bank loans, assisting in their related administrative requirements, and ensure Good Agricultural Practices trainings (GAP). These actions will be conducted in line with the guidelines from the Ministry of Agriculture and Ministry of Agrarian and Spatial Planning.
Through this MoU, BPDP-KS facilitates financial support for the farmers in respect to the terms and conditions required by the government. The MoU was signed along with the launching of BPDP-KS road map titled: “Menuju Kemandirian dan Keseimbangan Sawit Indonesia (Towards Self Sufficiency and Stability of Palm Oil in Indonesia)” which explains the founding of BPDP-KS and 10 principles of BPDP-KS. The event was attended by Coordinating Minister for Economic Affairs, Darmin Nasution; Minister of Finance, Sri Mulyani Indrawati; Minister of Industry, Airlangga Hartarto; Minister of National Development Planning, Bambang Brodjonegoro; and Minister of Agrarian and Spatial Planning, Sofyan Djalil.
BPDP is a public service agency, currently functioned to give incentive in encouraging biodiesel uptake. Supporting government’s biodiesel mandate is a key milestone program that BPDP KS has initiated to absorb the oversupply stock of palm oil.
Since the realization of the biodiesel program, the price of CPO and fresh fruit bunch of palm oil has begun to recover and stabilize the entire industry in mid 2015. And in the year 2016 the price has reached pre-crisis level. In addition to biodiesel, BPDP KS also promote other programs such as replanting, research and development of palm oil, and promoting palm oil.
“With a lot of added value from BPDP for Indonesia, especially Palm Oil industry, the continuity of BPDP is very important,” said Darmin Nasution, Coordinating Minister for Economic Affairs.