MARKET DEVELOPMENT
Kadin Setting Up Financing Scheme for Plasma Farmers
Kadin Setting Up Financing Scheme for Plasma Farmers
17/03/2016 (Tempo.co) - The Chamber of Commerce and Industry (Kadin) is currently setting up an innovative financing scheme by rejuvenation of palm farms to improve plasma farmers’ production.
“Plasma farmers could get financing from bank of Rp500,000 per hectare per month for four years,” said Deputy Chairman of Kadin’s Agribusiness, Food and Forestry Division Franky O Widjaja in the fifth Conference on Oil Palm and Environment (ICOPE) in Nusa Dua, Bali on Wednesday, March 16, 2016.
According to Franky, palm oil company will be the guarantor for loan. The loan will be used as compensation fee (uang tunggu) during four years of replanting. “The fund [will come] from banks, collateral [will come] from nucleus who would buy and maintian it with high yield and fair price,” he said.
Franky said that there are currently 4.5 million hectares of plasma plot. Roughly 2 hectares of the plasma plots are owned by individual farmers. Thus, it could use financing scheme guaranteed by company.
Franky Ilustrates that after replanting, 1 hectare of plasma plots could produce 3 tons. Two million hectares of plasma plots could produce 6 million tons. “The 6 million tons of production is worth US$600 which would generate money equal to US$3.6 billion.”
According to him, it could lead to increasing productivity and bring investments equal to US$12 billion to US$15 billion within four to five years.
Franky also hoped that interest rate would be lower or equal to the interest rate of people’s business credit (KUR).
He revealed that Kadin has held discussion on the financing scheme with Financial Service Authority, Bank Indonesia and Finance Ministry.
“Plasma farmers could get financing from bank of Rp500,000 per hectare per month for four years,” said Deputy Chairman of Kadin’s Agribusiness, Food and Forestry Division Franky O Widjaja in the fifth Conference on Oil Palm and Environment (ICOPE) in Nusa Dua, Bali on Wednesday, March 16, 2016.
According to Franky, palm oil company will be the guarantor for loan. The loan will be used as compensation fee (uang tunggu) during four years of replanting. “The fund [will come] from banks, collateral [will come] from nucleus who would buy and maintian it with high yield and fair price,” he said.
Franky said that there are currently 4.5 million hectares of plasma plot. Roughly 2 hectares of the plasma plots are owned by individual farmers. Thus, it could use financing scheme guaranteed by company.
Franky Ilustrates that after replanting, 1 hectare of plasma plots could produce 3 tons. Two million hectares of plasma plots could produce 6 million tons. “The 6 million tons of production is worth US$600 which would generate money equal to US$3.6 billion.”
According to him, it could lead to increasing productivity and bring investments equal to US$12 billion to US$15 billion within four to five years.
Franky also hoped that interest rate would be lower or equal to the interest rate of people’s business credit (KUR).
He revealed that Kadin has held discussion on the financing scheme with Financial Service Authority, Bank Indonesia and Finance Ministry.