InfoSAWIT, JAKARTA – The Palm Oil Plantation Fund Management Agency (BPDP) continues to accelerate the implementation of the Smallholder Palm Oil Replanting Program (PSR) as a strategic step to improve the productivity of smallholder plantations while safeguarding the sustainability of Indonesia’s palm oil industry. In 2026, BPDP is targeting accelerated PSR disbursement covering an area of 50,000 hectares.
This commitment was marked by the signing of the Phase I Tripartite PSR Cooperation Agreements, held in Jakarta on Wednesday (29/1/2026). In this phase, the agreements cover a total area of 5,682 hectares and involve 42 smallholder palm oil farmer institutions across 11 provinces.
The signing ceremony was officially opened by the Chair of BPDP’s Supervisory Board, Dida Gardera.
PSR Acceleration and National Palm Oil Challenges
In his keynote speech, Dida Gardera emphasized that accelerating the PSR Program is a crucial part of addressing various challenges in national palm oil management. These challenges include sustainability issues, land legality, improving smallholder plantation productivity, as well as global regulatory dynamics such as the European Union’s deforestation-related policies.
As reported by InfoSAWIT from BPDP, Monday (9/2/2026), he noted that the PSR Program is not only aimed at replanting old and unproductive trees, but also serves as an instrument to strengthen smallholder palm oil plantation governance to become more competitive and sustainable.
Strengthening Stakeholder Synergy
Going forward, BPDP will continue to encourage synergy between central and regional governments, the banking sector, and smallholder farmer institutions to ensure that the PSR Program is implemented in a targeted and sustainable manner.
The acceleration of PSR is expected to have a tangible impact on improving plantation productivity, strengthening regional economies, and enhancing the welfare of smallholder palm oil farmers. With collaboration among all stakeholders, the target of accelerating PSR over 50,000 hectares in 2026 is optimistically expected to be achieved. (T2)
