Revitalization of the rubber in indonesia

Rubber Seed

Revitalization of the rubber plantation demands voiced by experts and stakeholders in the field of agribusiness and the national rubber industry has got a government response. In line with the agricultural revitalization program launched since 2004, the Department of Agriculture has been to revitalize the plantation from 2006.

Revitalization program includes three major commodities, namely oil palm, rubber and cocoa. According to the Directorate General of Estate Crops, Ministry of Agriculture, Ahmad Mangga Barani, revitalization will require credit financing of Rp 12 trillion (about USD 24 million per hectare) with a target area of ​​539 000 hectares. Plantation area is included in the revitalization program in 2008 increased more than 7-fold compared to the year 2007 are recorded in the area of ​​68 369 ha.

The area targeted for revitalization program 2006 - 2010 is an area of ​​2 million ha. Department of Agriculture has received a proposal covering 2.3 million ha, consisting of 1.9 million ha of oil palm derived from the proposed 18 provinces, covering an area of ​​213 000 ha of rubber proposals from 11 provinces, covering an area of ​​174 000 ha of cocoa and a proposal of the 11 provinces.

Plantation revitalization program is an effort to accelerate the development of smallholders through expansion, renovation and rehabilitation of plantations which supported the banking and investment credit interest subsidy by the government. This program involves plantation companies in the field as a partner in the development of plantation development, processing and marketing of commodities. The following table presents the total area of ​​rejuvenation and expansion of rubber plantations in 2008.

Director General of Plantation acknowledge the existence of several obstacles to the implementation of the revitalization of the plantation. These constraints include socialization program that has not been evenly distributed, the development of rubber and cocoa lack of banking support, the completion of administrative requirements and the interest rate of 10% which is still considered high in some provinces.

However, according to a press release, about the availability of funds is not a problem, because the 14 bank remains committed to extend credit. Executing banks as partners who lend the government has set the credit limit of up to Rp 34.17 trillion estates to fund the revitalization program until 2009. Delays would occur in compliance with administrative requirements and certain requirements for distribution is not problematic.

Banks involved in financing the revitalization of plantations include BRI, Bank Mandiri, BNI, Bukopin, Bank Mega, Bank Niaga, Bank International Indonesia (BII), Agro Bank, BPD NAD (Aceh), BPD North Sumatra, West Sumatra BPD, BPD Riau, South Sumatra BPD , and BPD Papua. To speed up the credit, the Department of Agriculture involving the local government (LG), proposed the addition of subsidized interest rates, and accelerate the certification of land to farmers.