Working Group - Palm Oil

Context:

Indonesia is the world’s largest palm oil exporter, exporting 34.6 million tons in 2018 alone. The industry also provides employment to 20 million people and relies heavily on smallholder farmers. In fact, 45% of palm oil production in Indonesia is contributed by smallholders. While it acts as a source of income for smallholders, the industry is faced with issues around low productivity rates on smallholder’s plantations, traceability, and ageing trees, many of which are already above 25 years old.

Activities:

  • Organizing farmers into cooperatives.
  • Conducting Good Agricultural Practices (GAP) training.
  • Developing an innovative replanting financing scheme for smallholder palm oil farmers, including farmers’ living expenses as part of the financing package (Sinar Mas).
  • Helping farmers become certified under the RSPO and ISPO certification guidelines (Indoagri and IDH).
  • Supporting farmers in getting short term loans for high quality fertilizer and herbicides (Triputra Agro Persada and Sinar Mas).
  • Supporting improvements in traceability by developing web and mobile applications for online-offline data collection, data evaluation and KPI reporting, as well as establishing traceability support services (Koltiva).

 

Impact:

  • 40,180 farmers engaged.
  • 93,377 land covered.

 

Member:

  • Sinar Mas.
  • IDH.
  • LDC Indonesia.
  • Rabobank Indonesia.
  • Triputra Agro Persada.
  • Koltiva.
  • Yara Indonesia.
  • Indofood Agri.
  • Tiga Pilar Sejahtera Food.
  • BRI Agro.
  • Directorate General of Plantation, Ministry of Agriculture.
  • PT Perkebunan Nusantara III.
  • Indonesian Palm Oil Association (GAPKI).
  • SPKS (Palm Oil Smallholders Union).