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BGA Shifts Focus from Infrastructure to People Development in Palm Oil Communities



Doc. InfoSAWIT/BGA Corporate Affair Director Johan Sukardi.
BGA Shifts Focus from Infrastructure to People Development in Palm Oil Communities

InfoSAWIT, JAKARTA – In many palm oil-producing regions, development is often measured by visible infrastructure such as roads, bridges and public buildings. At PT Bumitama Gunajaya Agro (BGA), however, the company is increasingly shifting its approach toward a different long-term investment: developing people and strengthening the capacity of rural communities.

According to InfoSAWIT, citing BGA Corporate Affair Director Johan Sukardi in an interview conducted in mid-May 2026, the shift is more than a change in the company’s Corporate Social Responsibility (CSR) programs. It reflects BGA’s broader view that sustainable development should leave behind not only physical infrastructure, but also knowledge, skills and stronger communities.

The company is therefore moving away from a development model centred primarily on assistance and physical projects toward a capacity-based approach. The focus, in essence, is not only on what is built, but on who is able to grow and benefit from the development process.

This approach has led to the establishment of Sekolah Desa Berdaya, a community development centre that serves as a key platform for BGA’s empowerment initiatives.

According to Johan, the program connects six pillars of the company’s CSR activities, covering education, economic development, health, environmental initiatives and humanitarian programs. It also seeks to address the long-term sustainability of the palm oil sector while preparing rural communities for broader economic change.

The programs extend beyond oil palm cultivation. They include the development of non-palm-based local businesses, village entrepreneurship and youth empowerment, including initiatives aimed at supporting the transition toward lower-carbon rural communities.

As of May 2026, BGA had established 39 assisted community groups operating across agriculture, livestock, fisheries, food processing and handicrafts.

The productive cultivation programs generated more than 29,000 kilograms of agricultural, livestock and fisheries products, with total turnover reaching Rp1.14 billion. Meanwhile, food processing and handicraft activities produced more than 44,700 items and generated approximately Rp658 million in turnover.

Combined, the total turnover of BGA-assisted community groups had reached Rp1.8 billion as of May 2026.

Some of these locally produced goods have also begun entering modern retail channels, including Hypermart outlets in Ketapang and Pangkalan Bun, as well as souvenir centres in Central Kalimantan.

For BGA, however, the success of community empowerment is not measured solely by sales figures. The company is also seeking to create what Johan described as “local champions”—individuals within villages who can drive social and economic development independently.

The empowerment strategy is designed in stages, ranging from strengthening community institutions and improving the capacity of independent oil palm smallholders to enhancing the competitiveness of rural youth through formal and non-formal education.

One example is BGA’s support for the Paket C equivalency education program for communities surrounding its operations. During the 2025/2026 academic year, the program involved 81 participants and recorded an attendance rate of more than 90%.

Over the past three years, the number of Community Learning Activity Centres (PKBM) supported by the company has also increased from one to four. (T2)

Source: InfoSAWIT Magazine, June 2026 Edition

 

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