Indonesian Palm Oil News (IPO News), Jakarta — PT Perkebunan Nusantara IV PalmCo continues to strengthen its role in supporting smallholder oil palm replanting through the Smallholder Oil Palm Replanting Program (PSR). As of August 2026, PalmCo had provided assistance for the replanting of a total of 49,077.94 hectares of smallholder oil palm plantations since 2024.
The initiative is not only aimed at helping farmers replace aging oil palm trees, but also at improving plantation productivity, strengthening the sustainability of smallholder businesses, and maintaining a reliable supply of raw materials for the palm oil processing industry.
PalmCo President Director Jatmiko K. Santosa said the company’s involvement covers technical assistance as well as its role as an offtaker, or buyer of farmers’ fresh fruit bunches (FFB).
“We reaffirm our commitment to growing together with smallholder farmers through partnerships that are transparent, productive, mutually beneficial and sustainable,” Jatmiko said.
12,395 Hectares in 2026
Of the total 49,077.94 hectares, PalmCo supported PSR activities covering 12,395.99 hectares during 2026 through August. The assistance has been carried out across several areas within the company’s operational regions.
PalmCo has adopted a partnership approach covering both upstream and downstream activities. Farmers receive support not only during the replanting process, but also through cultivation assistance and the implementation of Good Agricultural Practices (GAP).
This approach is important because the success of PSR is not determined solely by the replanting process. Once the new trees begin producing, productivity and FFB quality must also be maintained so that the plantations can generate better and more sustainable income for farmers.
PalmCo currently manages active PSR partnerships covering approximately 19,476 hectares of smallholder plantations, involving more than 9,000 partner farmers.
More Than Just Replanting
For PalmCo, the PSR program is also directly linked to the long-term sustainability of Indonesia’s palm oil industry. Replanting aging plantations is expected to improve smallholder productivity, allowing the industry to meet its raw material requirements without relying on additional plantation expansion.
This has become increasingly important amid growing demand for palm oil in both the food and energy sectors. PalmCo has emphasized that partnerships with smallholders are an important strategy for strengthening productivity while maintaining the availability of palm oil raw materials to support national energy requirements, including the biodiesel program.
Jatmiko also considers stronger farmer institutions to be an important component in accelerating replanting. With stronger farmer organizations, PSR implementation can be carried out in a more structured manner, including in terms of land legality and traceability, which is becoming increasingly important in international markets.
Offtaker Role Provides Market Certainty
In addition to providing technical assistance, PalmCo is strengthening its position as an offtaker. This role creates a more integrated connection between smallholder plantations and palm oil mills.
PalmCo data shows that through July 2026, the company had absorbed more than 2.09 million tonnes of FFB from partner farmers, an increase of more than 13% compared with the same period in the previous year. In July 2026 alone, FFB absorption reached approximately 361,000 tonnes, an increase of more than 40% compared with July 2025.
Under this model, the success of PSR does not end with the establishment of new plantations. Farmers are also encouraged to maintain productive plantations, implement good agricultural practices, and secure access to markets once the new trees begin producing.
Partnership Target to Continue Expanding
Strengthening partnerships is also part of PalmCo’s longer-term agenda. The company has previously stated its target of increasing its smallholder partnership area to 64,176 hectares by 2029, compared with 52,480 hectares recorded in May 2026.
The assistance provided to 49,077.94 hectares of PSR plantations from 2024 through August 2026 therefore represents an important part of PalmCo’s strategy to build a more productive and sustainable smallholder oil palm ecosystem.
For farmers, replanting is not simply about replacing old trees with new ones. It represents a long-term investment to improve plantation productivity, strengthen household income, and ensure the sustainability of farming businesses for the next generation.
According to Indonesian Palm Oil News (IPO NEWS), PalmCo’s initiative demonstrates that strengthening Indonesia’s palm oil industry depends not only on expanding the capacity of major plantation companies, but also on successfully improving the productivity of smallholder plantations. Through a combination of replanting, cultivation assistance, stronger farmer institutions and reliable FFB absorption, partnerships can become an important instrument for strengthening the foundation of Indonesia’s palm oil industry.
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