PT MASG's Factory in Peranap Improves the Welfare of Local Farmers
06 February 2026
Category:
Corporate Social Responsibility
PELITARIAU, Inhu - The presence of the PT Mustika Agung Sawit Gemilang (PT MASG) Palm Oil Mill (PKS) in Semelinang Darat Village, Peranap District, Inhu, Riau, has had a positive impact on local farmers in the Peranap District. By purchasing Fresh Fruit Bunches (FFB) directly from farmers, local farmers are satisfied because they are able to purchase their FFB at a high price.
With PT MSAG's palm oil mill directly purchasing FFB from farmers, the economic ecosystem of the farming community is improving. Furthermore, PT MASG employs approximately 80 percent of its 150 employees from the local community, while hundreds of FFB loading and unloading workers are employed outside the company's internal system.
This was stated by Zulkifli Panjaitan, SSos MM, Public Relations Officer for the PT MASG palm oil mill, to reporters on Thursday (January 23, 2020) in Rengat. "PT MASG's presence in Peranap District is not only intended to conduct business but also to help improve the local farming community's economy. This means boosting local incomes will impact the company's continued growth," Zulkifli said.
PT MASG, which has only been operational for three months, has not yet discharged any wastewater into residential areas. "The pond provided is not yet full. Waste disposal can only be carried out after a process in accordance with regulations and instructions from the Environment and Forestry Agency, in accordance with quality standards. It's not just about dumping PT MASG's factory waste," Zulkifli said.
For example, efforts are being made to prevent smoke from billowing from the boiler chimney at the PT MASG palm oil mill. This is because PT MASG uses sophisticated methods to prevent smoke from rising from the chimney, including burning empty fruit bunches (Jankos) first, crushing them before burning them.
Separately, the Peranap Sub-district Head, Umar SSos, confirmed that the economic well-being of oil palm farmers in Peranap District is being helped by the direct purchase of fresh fruit bunches (FFB) by the PT MASG mill. "If there are complaints from a number of community palm oil collectors, or Peron, a type of agent or buyer of palm oil from the community, who are disturbed by the direct purchase by the PT MASG mill, which is able to purchase fresh fruit bunches from local oil palm growers at a higher price than local agents, that's business competition, but the goal is to increase the income of the local oil palm growers," explained Umar.
This means, according to the Umur Sub-district Head, that PT MASG is not controlled by parties in the supply of fresh fruit bunches. In purchasing fresh fruit bunches directly from farmers, the PT MASG mill has a firm stance, firmly grounded in its desire to improve the economic well-being of local residents, particularly in the recruitment of local residents to work at the PT MASG mill.
"We, the Peranap District Government, should express our gratitude to the PT MASG mill for their role in changing and increasing community incomes amid rising fresh fruit bunch (FFB) prices," Umar explained.
Previously, a delegation from Commission II of the Inhu Regional People's Representative Council (DPRD) was seen arriving at the PT Mustika Agung PKS on Tuesday (January 21, 2020) at around 2:02 PM WIB. The delegation, led by Commission II Chairman Dodi Irawan, SHi, was seen. Also present were Commission II Deputy Chairman Martimbang Simbolon, Commission II Secretary Alex, and several Commission II members, including Chandra Saragi SE, Syahrial, Hj Ninik Mulyani SAg, and Mulya Eka Maputra SSos, during the unannounced inspection.
The Commission II delegation observed the processing of fresh fruit bunches (FFB) into Crude Palm Oil (CPO), inspected the waste treatment pond, and inquired about the cause of the foul odor arising from the processing activities at the mill.
Commission II of the Inhu Regional People's Representative Council (DPRD) was greeted by the management of PT Mustika Agung's palm oil mill. Edria Jupendra, the factory manager, Rio Nardi, the KTU, and Mulyadi, the public relations officer, were also present at the PT Mustika Agung palm oil mill.
During the meeting, the Commission II chairman stated that his office had conducted the inspection in response to public complaints. To ensure the processing of fresh fruit bunches (FFB) into crude palm oil (CPO) was carried out legally, they wanted to see all the permit documents for PT Mustika Agung's palm oil mill and the macro permits held by the PT Mustika Agung mill. **prc/ramdana