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PTPN V push to increase productivity and welfare of rubber farmers in Riau

15 April 2019 02:36 PM  Company: []
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JAKARTA - PT Perkebunan Nusantara V or PTPN V, a state-owned company engaged in oil palm and rubber plantations in Riau, is committed to conducting business innovation to improve the company's performance while increasing the welfare of farmers in its operational area. One of the innovations initiated by the management of PTPN V is the Program Insentif Untuk Karet Rakyat (Incentive Program for People's Rubber).

The Program Insentif Untuk Karet Rakyat helps farmers by subsidizing the price of people's rubber ingredients (bokar). This special and limited program aims to increase the income of rubber farmers and become a rubber price stabilizer on the market. At present, Program Insentif Untuk Karet Rakyat has been implemented in two regions of PTPN V work units, namely Bukit Selasih and Sei Lindai, Riau.

The program which has been implemented since the third week of February 2019, consists of a number of activities, among others, buying rubber directly to plasma farmers by participating in tenders carried out by farmer groups, making bokar purchases to smallholders is done directly, and disseminating information to farmers to participate in this program, so that it is right on target and provides benefits to the community

"As a manifestation of BUMN Hadir Untuk Negeri, Program Insentif Untuk Karet Rakyat has been proven in a short time to have succeeded in bringing great positive benefits to the welfare of rubber farmers in Riau. After Program Insentif Untuk Karet Rakyat was conducted, there has been an increase in the purchase price of bokar in the local rubber market by 23.48%. In addition, the incentives we provide are proven to be able to make rubber market price movements more competitive and prices are no longer being played by big collectors,” said Managing Director of PTPN V, Jatmiko K. Santosa.

As of the first week of April 2019, the results of the Program Insentif Untuk Karet Rakyat have been felt by a total of 2,923 farmers, consisting of 983 farmers in the working area of the Bukit Selasih Community Processing Plant (PPE) in Indra Giri Hulu and 1,940 farmers who located in the Lindi Sei Gardens (SLI) area in Kampar, Riau. While the amount of incentives that have been disbursed to farmers' rubber until the first week of April 2019 has reached Rp 3.6 billion. (LM)