InfoSAWIT, JAKARTA – Behind every bunch of oil palm fruit lies a story of hard work, hope, and trust. For smallholders like Umar and Atno, partnering with plantation companies is not merely a business arrangement—it is a pathway to a better future.
For Umar Isnadi, Chairman of KUD Sidodadi in Tanjung Benuang Village, Jambi, oil palm represents more than a livelihood. It embodies the hopes of his family and hundreds of cooperative members he leads.
Since 2000, Umar has dedicated his life to oil palm farming. From the beginning, he chose to partner with PT Kresna Duta Agroindo (KDA), recognizing the many benefits offered.
Through the partnership under the Smallholder Replanting Program (PSR) using the agricultural input scheme, farmers receive high-quality inputs such as certified seedlings, fertilizers, and essential farming tools. This support ensures proper replanting practices, higher yields, and more sustainable plantation management.
According to Umar, being an independent smallholder is challenging.
“When working alone, everything feels difficult. We have to manage everything ourselves, even though there are many things we don’t fully understand,” he explained.
Returning to Partnership for a Better Future
Umar previously partnered with PT KDA under a plasma scheme. After the partnership period ended between 2010 and 2015, he managed his plantations independently.
However, that experience reinforced his belief in partnerships. In 2025, he decided to rejoin PT KDA through the PSR program.
While operating independently, his production dropped significantly—from 6–7 tons per month on two hectares to just 2–3 tons.
“Back when we partnered, we could produce 6–7 tons per month. After going independent, it dropped to 2–3 tons. Our income was cut in half—it was a very difficult time,” Umar said.
Trust became the foundation of his decision to return, as he had seen firsthand the company’s transparency and operational performance.
Access and Support Drive Productivity
The PSR program provides access to superior Dami Mas seedlings, fertilizers, and sustainable farming guidance. The company also assists with administrative processes, such as land certification and documentation.
Farmers receive funding support from Indonesia’s Palm Oil Fund Management Agency (BPDP), amounting to IDR 60 million per hectare (up to four hectares per farmer), covering seedlings, land preparation, fertilizers, and technical training.
This support reduces the financial burden of replanting, improves yields, lowers debt, and builds more resilient livelihoods.
Nazarudin, PSR Coordinator at PT KDA, said the company provides high-quality seedlings, expert agronomic support, and contractor networks to reduce replanting costs. Fertilizer payments are deferred until trees begin producing, easing farmers’ financial pressure.
The initiative aligns with PT KDA’s sustainability ambitions as part of Sinar Mas Agribusiness and Food, which aims to train 100,000 smallholders in good agricultural practices by 2035. (*)
Source: InfoSAWIT Magazine Edition February 2026
