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Asian Agri's KUD partners sign cooperation agreement for palm oil replanting

The funds for the replanting programme will be very beneficial for partner farmers who are ready to replant their oil palm plantations. (Image source: Adobe Stock)

Three of Asian Agris Village Unit Cooperatives (KUD) partners on 21 July, signed a cooperation agreement (PKS) for the Palm Oil Replanting Programme (PSR)

The agreement was signed in collaboration with the Palm Oil Plantation Fund Management Agency (BPDPKS) and the banking sector, as distributors of PSR funding assistance, which is located at the Ibis Styles Hotel in Bogor, West Java. The three partner cooperatives are replanting  total of 778 ha of palm oil smallholders' plantation, including its 300 ha of land, KUD Jaya Makmur, Kampung Kumbara Utama, Kerinci Kanan District, Siak Regency, Riau covering 172 ha, and KUD Bukit Makmur, Sencano Jaya Village, Batang Peranap District, Indragiri Hulu Regency, Riau covering 306 ha.

BPDPKS director of Fund Collection, Sunari said, “As is known that PSR is a national strategic programme as part of the Government’s efforts to increase the productivity of national oil palm plantations. Therefore, through the signing of the cooperation agreement between the three parties in this X (ten) phase, it is hoped that synergies will be established between BPDPKS, banks, and cooperatives or smallholder groups to be able to accelerate the target achievement of the PSR programme.”

Asian Agri’s head of partnerships, Rudy Rismanto expressed his appreciation for the governments support through BPDPKS and the banking sector in supporting Asian Agri’s partner smallholders in funding this replanting programme. These funds will be very beneficial for partner farmers who are ready to replant their oil palm plantations. In addition, head of Jaya Makmur Cooperative, Sudiyono and the head of KUD Bukit Makmur, Irwan Ritonga also expressed their appreciation. 

Rismanto emphasised that carrying out 100% of the partner smallholder replanting programme was one of the first pillar targets in the Asian Agri 2030 sustainability commitment that was launched by Asian Agri in February 2022. “In achieving the Asian Agri 2030 target, we are always committed to providing assistance to partner smallholders, both providing knowledge about the best oil palm plantation practices, providing high-quality Topaz seeds to optimise productivity, assisting the loan process to finance the process of rejuvenating smallholders’ oil palm plantations, to assisting them to do other businesses outside of oil palm plantations as alternative income,” said Rismanto.

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