Detail

Indonesia

Oilseeds, oils and meals

Oil palm

01/11/2017

Production

Production support

Launched an oil palm rejuvenation scheme for small oil palm growers, in a bid to raise yields in smallholder plantations. The new scheme will cover 20 000 ha of Indonesian Sustainable Palm Oil (ISPO) certified plantations in a first phase.

Indonesia’s Government launched an oil palm rejuvenation scheme for small oil palm growers, in a bid to raise yields in smallholder plantations (see also MPPU June’17). The scheme will be funded by Indonesia’s Oil Palm Estate Fund, an instrument set up in 2015 to collect levies on palm oil exports (see MPPU July \'15). Reportedly, the new scheme will cover 20 000 ha of smallholder plantations in a first phase. Actually, out of 4.7 million ha cultivated by smallholders nationwide, some 2.4 million ha are said to require replanting – either because palms have surpassed their productive age or because poorly performing varieties were used when plantations were established. Reportedly, high-yielding varieties allow annual yields of 8 tonnes of palm oil per ha, compared to the current average of 2 tonnes. Only farmers whose plantations have earned ISPO (Indonesian Sustainable Palm Oil) certification will be allowed to participate in the replanting programme. Designed to promote sustainable production practices and ensure compliance with national laws, ISPO certification has been made mandatory for companies, while remaining voluntary for smallholders. In order to qualify for certification, farmers need to prove legal ownership of their land – a requirement that not all smallholders are able to fulfill, according to social advocacy groups.