Indonesia’s Estate Crop Fund (BPDP) has so far allocated IDR 10.89 trillion (USD 648.60 million) in subsidies to support smallholder palm oil farmers in rejuvenating aging plantations and enhancing productivity, according to official remarks. The initiative, part of a long-standing replanting programme launched in 2017, aims to widen its positive impact across roughly 384,000 hectares of smallholder land, while substantial potential remains to cover another 2 million hectares in future cycles.

The programme also supports Indonesia’s biofuel goals by helping meet mandated biodiesel requirements through fund levies collected from exporters, with IDR 31 trillion raised in 2025. This sustained push is expected to strengthen yields from around 2.5 tons to 3 tons per hectare per year and further elevate the welfare and sustainability of small farmers, positioning Indonesia’s palm oil sector for continued growth.
Source:
https://english.kontan.co.id/news/indonesia-distributes-648-million-in-subsidies-for-palm-oil-replanting-programme