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PISAgro | Partnership for Indonesia Sustainable Agriculture



Indonesia is one of the world's largest producers and exporters of palm oil, contributing significantly to its economy. The industry had been grappling with sustainability concerns, including deforestation, habitat loss, and social issues related to land use. Efforts were being made to address these challenges through the adoption of sustainable practices and certification standards like RSPO (Roundtable on Sustainable Palm Oil). The government had also introduced policies aimed at increasing the use of sustainable palm oil domestically. However, balancing the economic benefits of palm oil with environmental and social responsibility remained a complex task.

Palm Oil WG is a multi-stakeholder alliance comprising private sector leaders, governmental bodies, non-profit organizations, and palm oil smallholders, is passionately dedicated to enhancing both productivity and livelihoods within the palm oil industry through sustainable practices. Palm Oil WG primary mission is to empower smallholders with the knowledge, resources, and ethical farming methods required to increase palm oil productivity, reduce environmental impact, and ensure equitable economic benefits. Through initiatives encompassing responsible land management, access to sustainable farming techniques, fair trade practices, and certification support, the coalition seeks not only to boost smallholders' palm oil yields and income but also champions the preservation of natural ecosystems. Palm Oil WG serves as an inspiring example of the transformative power of public-private partnerships, showcasing how collaborative efforts can drive positive change, secure the future of the palm oil industry, and improve the well-being of rural communities in a sustainable and inclusive manner.

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).
  • - 45% increase in baseline income.
  • - 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 :

  • - 205.777 farmers engaged
  • - 442.652 ha of land
  • - Average income around IDR 4.500.000/month
  • - Productivity around 3,8 ton/ha


Peremajaan Sawit Rakyat Programme (PSR)/smallholders rejuvenation programme is a collaborative and sustainable program aimed to maximise the productivity of smallholder palm oil plantations. The model promote the implementation Good Agricultural Practices (GAP) by the smallholders as landowners, supported by the company.


Indicator Before After
Production/Productivity Number of productivity started at 10-15 ton/ha/year FFB; 2-3ton/ha/year CPO Raised productivty by 23-35 ton/ha/year FFB; 5-6 ton/ha/year CPO
Market Access Farmers only have the access to local market and local intermediaries Farmers now have access to wider market opportunity including export commodity with Smart Tbk as an offtaker
Financial Farmers only have the access to financial help with Commercial Interest Rate (12%/annum) Farmers now have access to a more competitive interest rate (9,5%/annum)
Indicator Before After
Capability Building Farmers run the farming process by self-management farming Farmers are trained with Good Agriculture Practices provided by the company
Social Impact Farmers have lower productivity and income around Rp.1000000-1500000/ha/ month Farmers now have higher productivity and income stated around Rp.4000000-Rp.5000000/ha/month
Indicator Before After
Innovation and Infrastructure Farmers have inadequate infrastructure to support farming operation & good-quality of live Farmers now have the access to well-developed infrastructure (roads, bridges, irrigations, and cooperatives) to support farming operations
Sustainability Non-existing program for rehabilitation and environment support Farmers are now provided with access to RSPO Certification and rehabilitation&environment support program

Inclusive Closed Loop Inisiatives :

- Inputs: Partnered with quality input providers to assist the availability of seeds, fertilizers, and pesticides/herbicides.
- Financing: Facilitated access for farmers through partnering with stimulus and fintech company, create a funding through cooperatives/banks with favorable interest rate.
- Technology: Provided access to digital market and technology assited by e-commerce and start-ups.
- Government/Regulatory: Collaborated with government to provide regulation support, infrastructure, land availability, and certification.
- Market Access: Help farmer in gaining more access to market by partnered with merchant and global market opportunity (export).
- Knowledge: Provided farming knowledge to increase income and productivity and Good Corporate Governance facilitated by Cooperatives and in collaboration with BUMDes.