BPDPKS Support Development of Palm Oil’s MSMEs
In a pandemic and the threat of recession like today, palm oil is the most resilient commodity in which foreign exchange from palm oil helps the economy by contributing USD 11.9 billion during the January-July 2020. The palm oil plantation sector also relatively resilent in the midst of pandemic which has driving of the economy in rural and regional areas.
The existence of Micro, Small and Medium Enterprises (MSMEs) is currently one of the sectors that contribute to building the Indonesian economy. Various innovations have been developed so that this sector continues to grow in line with the support needed from the government.
As we know, there is a lot that can be developed by MSME actors by utilizing palm oil as a main raw material or supporting material. Various products from palm have emerged, such as hand sanitizers, disinfectants, palm brown sugar, various handicraft products, and various palm surfactant products.
The Indonesian Ministry of Cooperatives and SMEs is currently preparing various steps forward in order to maintain the sustainability of MSMEs in various sectors, including the palm oil sector. Based on data, of the 67 million MSMEs in Indonesia, amount of 5.6 percent are MSMEs from the agricultural sector.
The steps taken by the Indonesian Ministry of Cooperatives and SMEs are: (1) providing direct cash assistance to 12 million active MSMEs with a grant of 2.4 million per MSME, (2) online training, and (3) carry out standardization and product certification given to MSMEs in accordance with their respective commodities so that these products have high competitiveness.
In the dialogue organized by the Majalah Sawit Indonesia, BPDPKS’s Partnership Director’s caretaker stated that they also has a program to help empower farmers in this case through MSMEs. One of the efforts to improve farmer’s welfare is by directing them to the MSMEs sector. In this sector, they able to increasing their income by developing productive businesses through the creation of added value both of from oil or biomassa become a palm oil-based product.
BPDPKS supports oil palm farmers to build MSMEs to improve welfare and drive the local economy. One of them is to encourage oil palm MSMEs to produce products that are needed by the community and relevant to the current situation. Such as food, sanitation, and body cleaning products. BPDPKS has also started several programs that focus on MSMEs and farmer groups. In addition, BPDPKS also collaborates with other institutions such as the Surfactant and Bioenergy Research Center – Bogor Agricultural University (SBRC – IPB) to produce products that are currently needed, such as handsanitizer.
It’s expected that the large number of MSME in palm oil sectors can make palm oil farmers and their community more independent in finansial aspect through various businesses diversification and can further improve their welfare.
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