Jakarta, 26 September 2025 – Two Village Unit Cooperatives (KUDs) partnered with Asian Agri officially signed a Cooperation Agreement for the Smallholder Palm Oil Replanting Program (PSR), in collaboration with the Palm Oil Plantation Fund Management Agency (BPDPKS) and participating banks as PSR fund distributors. The signing ceremony, held at Hotel Aryaduta in Jakarta, marks a strategic step in efforts to boost the productivity of scheme smallholders through the replanting of palm oil plantations.
The two cooperatives receiving PSR funds on this occasion were KUD Sejahtera from Desa Makmur, Kerinci District, Pelalawan Regency, Riau, covering 179 hectares and consisting of 78 smallholders, and KUD Kebun Sawit Harapan from Desa Gabung Makmur, Kerinci Kanan District, Siak Regency, Riau, spanning 219 hectares with 95 smallholders.
On the occasion, Normansyah Hidayat Syahruddin, Director of Upstream Fund Distribution at BPDPKS, urged the chairpersons and board members of KUD to use the PSR funds responsibly and with integrity. “These funds must be utilized properly to improve the welfare of members and support the sustainability of farmers’ businesses,” he said.
Replanting is more than just replacing palm trees that have passed their productive years. It is a key strategy to restore productivity in aging plantations while ensuring the continuity of smallholders’ income. Beyond that, replanting also promotes land efficiency and intensification. With financial support from the PSR program and ongoing technical guidance, partner smallholders are expected to carry out replanting more quickly and adopt cultivation practices that are both more productive and sustainable. In this way, replanting delivers economic benefits while supporting the sustainability of the palm oil industry and the environment.
Hendra Saragih, Plasma Manager at Asian Agri, explained that financial support and technical guidance are key factors behind the success of the replanting program. “The availability of funding and a structured assistance program ensures that replanting is carried out according to technical standards while remaining economically viable. We support smallholders from the financing stage, through planting, and even after loan repayment, so that the newly replanted estates can reach optimal productivity and maintain stable income for the smallholders. This guidance also equips them to manage their plantations more productively and sustainably over the long term,” he said.
Meanwhile, Head of KUD Sejahtera, Agus Sumiran, stated, “This funding brings new hope for our farmers. With this support, we can rejuvenate our plantations and improve yields, ensuring the continued well-being of KUD Sejahtera members.”
Suryadi, Head of KUD Kebun Sawit Harapan, added, “We truly feel the strong support from this program, even though we still face challenges as we wait for the new trees to start producing. The financial assistance and technical guidance have helped us become better prepared to navigate this transition period.”
This program supports Asian Agri’s 2030 sustainability targets, particularly under the smallholder partnership pillar. The company is committed to encouraging all partner farmers to carry out replanting as a strategic step to address declining productivity.
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
