INDUSTRY.co.id - Jakarta - The government issued a special People’s Business Credit (KUR) scheme of palm oil renewal with a 7% interest for the people's plantation. This special scheme is intended for oil palm farmers who manage palm-based cluster or cooperative management.

Inauguration of KUR special scheme of oil palm rejuvenation by President Jokowi, attended by Coordinating Minister for Economic Affairs Darmin Nasution, Minister of Cooperatives and SMEs Puspayoga, Minister of Agriculture Amran Sulaiman, Minister of Agrarian Affairs and Spatial / Head of BPN Sofyan Djalil and state-owned banks KUR distributor, Monday (27 / 11) in the middle of the palm oil estate of Central Village Village, Dolok Masihul District, Serdang Bedagai Regency, North Sumatra.

The President asserted that oil palm rejuvenation should be done to improve the productivity of palm oil while improving the welfare of the oil palm farmers.

"Many of the old people's palm plantations have low productivity and if not rejuvenated, Indonesia as the largest palm oil producer in the world will now be overtaken by other countries," said President.

Minister Puspayoga conveyed the establishment of cooperatives for oil palm farmers is necessary in order to facilitate the government to help farmers.

"Farmers who joined in the cooperative will be easier for the government to coordinate to provide coaching, training and mentoring," said Puspayoga.

He asserted that KUR interest rate of 7% for palm rejuvenation with credit up to Rp 25 million does not need collateral while KUR above Rp 25 million required land certificate.

At the same time, Minister Puspayoga signed a memorandum of understanding with Minister of Agriculture Amran Sulaiman, Minister of Agriculture and Spatial Sofyan Djalil and Director General of Sea Spatial Management of the Ministry of Marine Affairs and Fisheries of Brahmantia on the empowerment of community land rights for small and medium businesses, farmers, fishermen and cultivators fish.

The Coordinating Minister for Economic Affairs confirmed that cooperative palm-based renewal is urgently needed for standardized management. Because this particular scheme is only for farmers owning a maximum land area of ​​4 hectares, must use certified seeds, sustainable palm oil management under ISPO standards and the purchase of palm farmers will be done by private or state-owned enterprises.

KUR special scheme of oil palm rejuvenation implemented from 1 January 2018. KUR approved by the channeling bank will not be given all at once, but will be paid monthly as needed. Thus the burden of interest borne by farmers is lighter.

Indonesia's palm oil area reaches 11.9 million hectares with a palm plantation area of ​​4.6 million hectares of people. Currently the palm oil plantation is more than 25 years old, generally using seeds that are not qualified so that productivity is low, and management does not meet the good standards.