Indonesia seeks to replant 120,000 hectares palm oil, up to 10,000 hectares cocoa plantation

Indonesia has set a target to replant 120,000 hectares of smallholders’ palm oil plantations and up to 10,000 hectares of smallholders’ cocoa plantations this year, the chief executive of the state plantation fund said on Monday.

The agency, which collects and manages the palm oil export levy to fund government palm oil programmes including smallholder replanting and biodiesel funding, earlier this year went through a reorganisation process following a decision to include management of cocoa and coconut programmes.

“For cocoa and coconut replanting, regulations are being prepared especially on Agriculture Minister regulation as the basis of rejuvenation in cocoa and coconut,” state plantation fund chief executive Eddy Abdurrachman told a parliamentary hearing.

The agriculture ministry estimated that 282,378 hectares, or more than 20% of Indonesia’s cocoa plantation, were damaged and pressuring output. This year, the government targets to replant between 5,000 hectares and 10,000 hectares of cocoa and coconut plantations each.

Indonesia provides 60 million rupiah (about US$3,700 or RM16,402) per hectare to replant unproductive palm oil plantation owned by smallholders. The agency has not shared the amount that will be provided for cocoa replanting.

In 2024, the agency funded palm oil replanting for 38,247 hectares, below the targeted 70,000 hectares due to land legality issues and high palm oil prices.