PTPN Ready to Play a Role in Agrarian Reform Program

The Human Resources and General Director of PT Perkebunan Nusantara III (Persero) Seger Budiarjo revealed that to date the government has not consulted with the company over the FELDA concept. Especially since the presidential decree regarding the land reform is still being drafted by the Ministry of Economic Affairs.

However, he assured that PTPN is ready to take a role in the land reform, which is the main program of the Joko Widodo-Jusuf Kalla administration. If given the assignment in the future, Seger hopes that the role and work equipment for the state-owned enterprise (BUMN) are clear.

“In principle, we must support government programs. We will see what will happen to the policy,” he told Bisnis.com, Wednesday, 19 April 2017.

Seger said that a concept similar to FELDA had actually already been implemented in Indonesia in the form of core plantations for transmigration (PIR-trans). However, he acknowledged that the FELDA model was more successful.

Previously, the Agrarian and Spatial Planning Minister Sofyan Djalil had explained the FELDA-style role in the land reform, which includes strengthening the management of farmer cooperatives, mentoring, and funding. The funding could come from state capital investment, BUMN banks, or the company’s own cash.

In the beginning stages, the largest portion will come from state capital. Over time, state funds will diminish and be replaced by financial institutions and the company’s own cash.

https://m.tempo.co/read/news/2017/04/19/090867691/ptpn-siap-berperan-dalam-program-reforma-agraria