InfoSAWIT, JAKARTA – The Indonesian Oil Palm Farmers Union (SPKS) and Japan’s Nissin Foods Holdings have officially launched a collaborative program to support the sustainability of palm oil supply chains from independent farmers in Indonesia.
The initiative begins with a pilot project aimed at integrating smallholder farmers into Japan’s industrial supply chain through RSPO (Roundtable on Sustainable Palm Oil) certification. The launch event, marking the culmination of a collaboration initiated in 2018, included a gap analysis on the sustainability practices of smallholder farmers in Indonesia.
“This program represents our commitment to ensuring the traceability and sustainability of the palm oil we use while supporting smallholder farmers,” stated Kei Saito, General Manager of the Corporate Planning Division at Nissin Foods Holdings, during the signing of the MoU between SPKS and Nissin Foods, attended by InfoSAWIT on Tuesday (Dec. 10, 2024) in Jakarta.
Nissin Foods, a major producer of palm oil-derived products such as instant noodles, is committed to building a traceable and sustainable procurement system. The pilot project will take place in Sugih Waras village, involving 300 households managing 500 hectares of independent palm oil plantations.
“We are thrilled to launch this initiative alongside SPKS and the community of Sugih Waras village. Our goal is to enhance sustainable agricultural practices and improve the welfare of smallholder farmers,” added Kei.
SPKS National Chairman Sabarudin welcomed Nissin Foods’ investment in building sustainable supply chains. “We hope Japan’s supply chain will be fully sourced from smallholders who are deforestation-free and sustainable. SPKS is ready to serve as an independent verifier to ensure this sustainability,” he emphasized, also calling for fair partnerships to ensure farmers receive equitable prices.
The program is supported by Caux Round Table Japan (CRT Japan), whose Executive Director, Hiroshi Ishida, highlighted their role in bridging companies and farmers to foster trust and collaboration. “We aim to contribute to creating a better society through this initiative,” he said.
Sugih Waras Village Secretary Asrianto expressed high hopes for the program. “We need support in capacity building, institutional development, and knowledge transfer to implement sustainable practices. Hopefully, this program will improve farmers’ welfare and strengthen fair partnerships,” he said.
The collaboration between SPKS and Nissin Foods Holdings is expected to serve as a milestone in better managing palm oil, enhancing smallholder farmers’ prosperity, and strengthening Indonesia’s position in the global sustainable palm oil market.
