THE IMPACT OF THE PALM OIL REPLANTING PROGRAM (PSR) ON OIL PALM FARMERS AT KUD MITRA USAHA, BUATAN BARU VILLAGE, KERINCI KANAN DISTRICT, SIAK REGENCY, INDONESIA

Abstract

Indonesia is the world’s largest producer of palm oil, with over 40% of plantation areas managed by smallholder farmers. However, many of these plantations are aging and were initially established using uncertified seeds, leading to a significant decline in productivity. To address this issue, the government launched the People’s Palm Oil Replanting Program (PSR) in 2017 through the Palm Oil Plantation Fund Management Agency (BPDPKS), offering replanting funds, certified seedlings, technical training, and institutional support. This study aims to analyze the impact of PSR on the economic, social, and institutional aspects of farmers in Buatan Baru Village, Kerinci Kanan District, Siak Regency, Riau Province. A qualitative descriptive approach with a case study method was employed, using in-depth interviews with 50 farmers, field observations, and document analysis. The results show a significant increase in both productivity and income: average production rose from 10–20 tons in 2020 to 36–53 tons in 2024 per 2 hectares, while gross income increased from IDR 30–50 million to IDR 100–145 million. Farmers began adopting sustainable farming practices and actively participating in cooperatives. However, challenges such as delayed fund disbursement, limited post-planting training, and unstable market access remain. These findings provide a valuable evaluation for improving future PSR policies.