JOURNAL MONITOR EDITION 24 : MANAGEMENT IN ONE AREA AND THE ENERGY BASIS BECOMES A SOLUTION OF STRENGTHENING SMALLHOLDER’S PALM OIL FARMERS
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Smallholder farmers through their role as one of the important actors in the national palm oil plantation and industry, have contributed greatly to the regional and national economy. Even through its quite revolutionary development, they have also helped Indonesia to become the world’s largest producer of palm oil and the world’s largest producer of vegetable oil. However, they also have to face various problems such as limited capital and access, low FFB prices received by independent oil palm farmers, remote access between independent oil palm plantations and Palm Oil Mill, unresolved issues of land legality and plantation business (STDB).
The solution to the problems faced by smallholder oil palm farmers is to strengthen the role of farmers through participation in the downstream palm oil industry, namely the development of Palm Oil Mill which supplies CPO as raw material for biohydrocarbon products to be used to fulfill national needs and in order to manifest national energy independence. However, the management of the Bio-hydrocarbon Palm Oil Mill cannot be done individually and requires cooperation between oil palm farmers in the form of a corporation.
The management of oil palm plantations in this area aims to change farmers who initially work individually to work in a “corporation”. The management in one area is farmers who have oil palm plantations with an area of three thousand hectares, so the oil palm farmers in them can cooperate with each other in cooperative management of oil palm plantations in form like Cooperatives, BUMDesa or Limited Liability Company (PT/CV) and also will be be integrated with a holding in province. The institution of oil palm farmers in the area in managing Bio-hydrocarbon Palm Oil Mill is also supported by other units such as the microfinance institution unit, the production facility procurement unit (input), the palm biomass-based business unit and the store unit.
Biohydrocarbon Palm Oil Mill, which is located near and in the farmer area, with capacity of 10 tons of FFB/hour. This mill can process FFB to Industrial Palm Oil (IPO) and Industrial Palm Kernel Oil (IPKO) as a raw material for biohydrocarbon. The IPO/IPKO will be accommodated by the provincial level holding, then the holding will distribute the IPO/IPKO to the Stand-alone refinery which has to produce pure biofuels. And then will be distributed again to the Pertamina Depot’s Co-processing refineries at the provincial level for blending with fossils which will then be distributed to petrol stations
With the management of smallholder oil palm plantations in the area with the model above, besides being able to solve the problems faced by oil palm farmers and in the context of realizing national energy independence, it is also expected to be able to increase income and welfare and create economic independence for oil palm farmers in a sustainable manner to create a greater multiplier effect on regional and national economy.