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Bank Aceh Syariah Supports People’s Palm Oil Rejuvenation Program

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ACEHSATU.COM | ACEH TAMIANG — Bank Aceh Syariah Business Director, Bob Rinaldi, to support the People’s Palm Oil Rejuvenation (PSR) program, Bank Aceh Syariah is also ready to provide financing until the plant bears fruit.

According to him, during their working visit with the Plt Komut Bank Aceh Syariah Taqwallah to the branch office, they also mentioned this issue.

He mentioned that several BAS branch offices, including the Aceh Jaya, West Aceh, and Nagan Raya branch offices, whose regions received the PSR program quota, had already made plans for the distribution of the PSR funds.

Previously it was reported that the central government through the Director General of Plantations (Dirjenbun) of the Ministry of Agriculture (Kementan) was still continuing to provide assistance to the PSR program for Aceh.

Head of Agriculture and Plantation or Distanbun Aceh, Ir Cut Huzaimah MP, accompanied by his staff Faisal conveyed this to Serambinews.com in Banda Aceh on Sunday (22/08/2021).

“The program will continue until this year and Aceh is given a quota of 20,500 hectares with an estimated aid fund of around Rp 615 billion,” said Cut Huzaimah.

Cut Huzaimah said that the quota for the PSR program given by the Director General of Plantation of the Ministry of Agriculture this year of 20,500 hectares has been divided into nine areas for smallholder oil palm development centers.

The nine areas are Aceh Tamiang 3,000 hectares, East Aceh 1,000 hectares, North Aceh 2,500 hectares, Aceh Jaya 2,000 hectares, West Aceh 2,500 hectares, Nagan Raya 4,000 hectares.

Then Aceh Singkil 2,000 hectares, Subulussalam 2,500 hectares, and South Aceh 1,000 hectares.

Meanwhile, in the previous three years, namely 2018-2020, the PSR funds that had been transferred by the Director General of Plantation of the Ministry of Agriculture to channeling banks in Aceh reached Rp 793 billion.

People's Palm Oil Replanting Program
Photo Doc. Antaranews.com

The 2018-2020 PSR funds are for people’s oil palm plantations in Aceh covering an area of ​​29,299.9 hectares.

Cut Huzaimah said the aim of the program was to help farmers rejuvenate their old and unproductive oil palm plantations and replace them with new crops.

The source of the PSR funds comes from the imposition of a crude palm oil (CPO) export tax.

The proceeds of the CPO tax collection, continued Huzaimah, are used again by the government to rejuvenate the people’s oil palm crops.

Thus, the productive area of ​​smallholder oil palm plantations continues to increase, so that CPO production from Indonesia remains high and this country can dominate the world CPO export market.

Cut Huzaimah said the world’s demand for palm oil is currently very high.

Palm oil is currently not only used for cooking oil, but also as a substitute for fuel oil, such as bio-diesel, whose demand continues to increase.

Meanwhile, the raw material for petroleum found to make diesel is increasingly difficult to obtain on earth.

BAS as a Distributing Bank

Cut Huzaiman said that prior to the Qanun on Sharia Financial Institutions in Aceh, the banks that channeled PSR funds in Aceh were BRI, BNI, Bank Mandiri and Bank Aceh.

Meanwhile, currently the distributors of the PSR funds are in Aceh, the Aceh Syariah Bank and the Indonesian Islamic Bank (BSI) which will be the distributors of the PSR funds.

The PSR funds, said Cut Huzaimah, were distributed free of charge, per hectare of around Rp. 30 million. The PSR program proposal was proposed from each region that received a PSR development quota.

According to Faisal, the procedure for proposing PSR funds is that the regions receive a quota distribution for the PSR program, looking for cooperatives and farmer groups with oil palm plantations that are over 25 years old.

This means that oil palm plants are no longer productive to be rejuvenated.

The proposal was made by the Regency/City Plantation Office, after carrying out a clear data collection on the land, farmers and institutions that will receive the disbursement of the PSR funds.

Then the District/City Disbun sends the PSR fund proposal document to the Aceh Agriculture and Plantation Service.

The Aceh Agriculture and Plantation Service will verify the administration’s correctness of the documents.

Then provide a cover letter or recommendation to forward the PSR fund disbursement proposal to the Director General of Plantation of the Ministry of Agriculture in Jakarta.

After the Dijerbun studied the proposal, it was deemed worthy of assistance and was in accordance with the rules and stages of its proposal, the Director General of Plantations forwarded it to the Palm Oil Plantation Fund Management Agency (BPDPKS), as the channeling agency for the PSR funds to regional channeling banks.

Cut Huzaimah appealed to areas that have received a quota for the people’s oil palm rejuvenation program, the Plantation Service immediately collected data and proposed rejuvenation.

The funds are provided free of charge by the government, but they must be used for the rejuvenation of the people’s oil palm plantations, not for misuse.

Regions and farmer groups who misuse the use of the PSR funds will accept the risk.

Once the funds are transferred to the channeling bank, the disbursement from the oil palm farmer group will be monitored by a team. The disbursement is carried out in stages, according to the stages that have been regulated by the Director General of Plantation.

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