Page 32 - sr_2012.pdf

local economy and smallholders
the local economy
IndoAgri’s stable growth and development directly affects
our economic contribution – in terms of regional taxes
and levies – to Indonesia and the local community. We
actively involved local companies and smallholders in
the supply chain. In 2012, 31% of the cost of goods
sold of the plantations was attributed to purchases of
Fresh Fruit Bunches (FFB) from plasma smallholders
and third parties (see chart below).
FFB purchases in 2012
nucleus plasma schemes xiv
IndoAgri fully supports the Nucleus-Plasma Scheme.
In 2012, we managed 83,010 hectares operated by
our smallholders.
The Nucleus-Plasma Scheme is created by the Indonesian
government for plantation companies to develop oil
palm plots for smallholders, known as plasma, on plots
near to their plantations, or nucleus. The plasma plots
are typically two hectares of oil palm plus one hectare
of other crops.
Under the scheme, the nucleus assists the plasma
farmers to develop and manage their plasma plantations
up to a predetermined physical condition, typically
within three to four years, before the management of the
plasma plantations are transferred to the smallholders.
After the transfer, plasma farmers under the Koperasi
Kredit Primer Anggota scheme can continue to receive
land management assistance from the nucleus for a
management fee.
Most plasma farmers do not have sufficient capital resources
independently and will usually seek external financing
to develop and manage their plasma plots. Financing is
provided by the local banks or the nucleus, and covers
the direct development costs for the preparation of the
plasma plot until the transfer of the plasma plantation
back to the smallholders.
Over the years, three main types of plasma schemes
have been developed:
1. (1978-2001) Perkebunan Inti Rakyat Trans
(PIR-TRANS): individual farmers who
are appointed by regional government or
transmigration minister.
2. (1986-2006) Koperasi Kredit Primer Anggota
(KKPA): farmers are united under a village
cooperative or Koperasi Unit Desa (KUD).
3. (2006-present) Revitalisation Programme.
Schemes 1 and 2 differ in that under KKPA, the plasma
farmers contract the nucleus services for a management
fee under the cooperation.
In 2007, the Indonesian Ministry of Agriculture Regulation
No. 26 of 2007 has made it mandatory for new plantation
developments to set aside at least 20% of net cultivated
area of nucleus plantations for plasma plantations.
The Nucleus-Plasma Scheme is widely implemented
in Indonesia today because plasma farmers can be
assured of the productivity of their plasma plantations
under the professional management of the nucleus.
The cash flow from the plantations provides a source for
loan payment and income to the farmers. The plasma
farmers also benefitted from the transfer of knowledge
and skills from the nucleus.
plantation ownership in 2012
Q Plasma smallholders
Q Third Parties
86%
14%
Q Nucleus
Q Plasma
74%
26%
Indofood Agri Resources Ltd.