InfoSAWIT, JAKARTA - Sabarudin, the Chairman of the Indonesian Palm Oil Smallholders Association (SPKS), announced that the organization aims to support approximately 300 independent palm oil farmers in Musi Banyuasin, South Sumatra, to produce sustainable palm oil. This collaboration marks a significant breakthrough, particularly as Nissin Foods, one of Asia's largest palm oil buyers, begins to partner directly with independent farmers.
According to Sabarudin, Nissin Foods is committed to sourcing sustainable palm oil. Historically, the Japanese company has collaborated with large corporations for its palm oil supply. However, this new initiative ensures that the supply chain empowers farmers directly. "This partnership not only guarantees a sustainable palm oil supply but also focuses on empowering farmers through training, productivity enhancement, and farm management that meets the standards of the Roundtable on Sustainable Palm Oil (RSPO) and the Indonesian Sustainable Palm Oil (ISPO)," Sabarudin explained to InfoSAWIT recently.
SPKS has set a target to assist around 300 independent palm oil farmers managing a total of 700 hectares of land. The initial project is based in South Sumatra, with plans to expand to other regions such as Jambi, Riau, and North Sumatra. The support includes mapping farmers' income, strengthening village institutions, and providing training to improve farm productivity. "We want to ensure that SPKS members can implement sustainable standards that ultimately enhance their welfare," Sabarudin stated.
One of the main challenges in implementing certification standards like RSPO and ISPO is the high costs involved. However, this collaboration is designed to address these obstacles through guidance and financial support. Sabarudin also emphasized the importance of providing premium prices for farmers who adopt sustainable practices. "If farmers incur additional costs for certification and implement high standards, they should receive incentives in the form of better prices. This is crucial for promoting sustainability," he added.
Currently, the biggest challenge is the market structure, which is still dominated by large companies. Independent palm oil farmers often serve merely as suppliers to companies that then sell products to buyers like Nissin Foods. SPKS hopes this collaboration will serve as a model to ensure farmers receive direct benefits from the global market. (T2)
