Govt to Open 20,000 Hectares for Small Farmers

THREE state plantation firms, PT Perkebunan Nusantara I, III and IV, will form a new operation called Perkebunan Inti Rakyat (PIR) that will open 20,000 hectares of land for palm oil and rubber plantations in Aceh and North Sumatera.

“The land will be handed over to 10,000 farmers in the area. Each farmer will receive two hectares of land,” State Minister of State Enterprises Mustafa Abubakar told reporters in Jakarta on Friday.

Mustafa said the project would be financed by state bank PT Bank Rakyat Indonesia.

“For the rubber plantations, the bank will disburse Rp 35 million per hectare, and Rp 38 million per hectare for palm oil plantations,” he said, adding that the project would help farmers operate independently.

The project will begin on Jan. 7 next year, Mustafa said.