Derivative Presidential Regulation on Plantations, BPDP to Fund Cocoa Commodities

The Ministry of Agriculture (“Kementan”) is currently drafting ministerial regulations and director general regulations derived from Regulation of the President No. 132 of 2024 on Plantation Fund Management (“Regulation 132/2024”). This draft regulation will govern the financing of the Plantation Fund Management Agency (“BPDP”) for cocoa replanting and downstreaming programs.

“In accordance with Regulation 132/2024, there are three commodities financed by BPDP, with regulations already in place for palm oil and coconut. For cocoa, it is currently being drafted,” said Yakub Ginting, Head of the Kementan’s Plantation and Seasonal Crops Working Team, to Hukumonline.

BPDP funding for cocoa commodities under this regulation will only be provided for replanting and downstreaming projects that are not funded by the State Budget (“APBN”). Yakub explained that the new regulation covers financing for four activities, namely: human resource development, research and development, rejuvenation, and facilities & infrastructure.

“Specifically, areas that have already received APBN assistance are not eligible for BPDP assistance,” he explained.