Jakarta, 3 February 2026 – Three Village Unit Cooperatives (KUDs) that is under Asian Agri partnership officially signed cooperation agreements today for the Smallholder Palm Oil Replanting Program (PSR) with the Palm Oil Plantation Fund Management Agency (BPDPKS) and participating banks responsible for disbursing PSR funding. The agreements were signed on Jan. 29.
The signing ceremony, held at the Movenpick Hotel Jakarta, marked a collaborative effort to support higher productivity among smallholder oil palm plantations through a well-planned replanting process carried out in accordance with PSR program requirements.
At the event, three Asian Agri partner cooperatives received PSR funding. They are KUD Bhakti Mandiri in Bukit Harapan Village, Kerinci Kanan District, Siak Regency, Riau Province, covering 200 hectares and involving 74 smallholders; KUD Buatan Jaya in Jatimulya Village, Kerinci Kanan District, Siak Regency, Riau Province, covering 168 hectares and involving 72 smallholders; and KUD Makarti Sawit in Buana Makmur Village, Dayun District, Siak Regency, Riau Province, covering 402 hectares and involving 162 smallholders.
In his remarks, BPDPKS President Director Eddy Abdurrachman emphasized that replanting under the Smallholder Palm Oil Replanting Program (PSR) is a strategic effort to restore the productivity of aging oil palm plantations.
“Replanting is a strategic measure to restore the productivity of oil palm plantations that has declined as trees age. Through the effective and compliant use of funding, this program is expected to help accelerate the development of a more sustainable palm oil sector,” Abdurrachman said.
Replanting is a strategic effort to restore the productivity of oil palm plantations that has declined as trees age. Through PSR funding support and technical assistance, the replanting process can be carried out in a more structured and well-planned manner, encouraging the adoption of more productive and sustainable cultivation practices while generating long-term economic benefits for both smallholders and the broader palm oil industry.
In implementing the PSR program, Asian Agri reaffirmed its commitment to providing ongoing support to its smallholder partners to ensure the replanting process is carried out in accordance with established requirements and delivers long-term benefits.
“Financing support, combined with continuous assistance, is key to ensuring replanting meets technical standards while remaining economically viable. We work alongside farmers from the financing stage through replanting and the immature planting period until their plantations become productive again. This approach helps safeguard the sustainability of their operations and the stability of their income,” said Rudi Rismanto, Head of Smallholder Partnership at Asian Agri.
Ahmat Sulikin, head of KUD Makarti Sawit, said the replanting initiative under the PSR Program marks an important step for cooperative members in revitalizing plantations that have reached the end of their productive lifespan.
“The PSR Program helps us restore plantations that are no longer productive while ensuring replanting is carried out gradually and in accordance with established guidelines. This process must be done properly, and we are proud to undertake it through our partnership with Asian Agri,” he said.
Sharing a similar view, head of KUD Bhakti Mandiri Galud Ludiyanto emphasized the importance of ensuring farmers are well prepared for both the replanting period and the long-term management of their plantations.
“Replanting requires farmers to be fully prepared, both during the replanting phase and in managing their plantations afterward. We hope these plantations can return to being managed productively and sustainably through partnerships that remain strong over time,” he said.
The implementation of the PSR program aligns with Asian Agri’s Sustainability Aspirations 2030, particularly its commitment to strengthening partnerships with smallholder farmers. Through long-term collaboration, Asian Agri remains committed to supporting its partner farmers in undertaking replanting as a strategic measure to address declining plantation productivity caused by aging oil palm trees.
About Asian Agri
Founded in 1979, Asian Agri is one of Indonesia’s foremost companies in crude palm oil production, managing over 100,000 hectares of oil palm plantations and employing over 20,000 people.
As a pioneer of the Indonesian Government’s Smallholder Transmigration Core Plantation Programme (PIR-Trans), Asian Agri has partnered with 30,000 scheme smallholders in Riau and Jambi, who collectively manage 60,000 hectares of oil palm plantations. The company also fosters partnerships with independent smallholders to enhance their welfare and drive socio-economic growth.
Committed to sustainable practices, Asian Agri upholds a zero-burning policy and implements plantation best management practices to help smallholders boost productivity, increase crop yields, and improve supply chain traceability while supporting their journey towards certification. Asian Agri’s mills leveraged advanced technology and self-generated green energy to minimize greenhouse gas emissions.
Asian Agri’s plantations, as along with their scheme smallholder plantations, are full Roundtable on Sustainable Palm Oil (RSPO) and International Sustainability & Carbon Certification (ISCC) certified, underscoring the company’s commitment to responsible and sustainable palm oil production.
Please visit Asian Agri’s website for more information and media inquiries may be directed to:
Corporate Communication, Asian Agri
E-mail: communications@asianagri.com
