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Asian Agri Published Commitment and Investment to Increase Smallholders’ Economy



Asian Agri Published Commitment and Investment to Increase Smallholders’ Economy

InfoSAWIT, JAKARTA – Asian Agri, one advance and biggest palm oil plantation company in Indonesia which is also subsidiary of Royal Golden Eagle (RGE) Group is selected by ASEAN Responsible Investment in Food, Agriculture, and Forestry (ASEAN RAI) as one company that showed up the commitment to increase smallholders’ welfare.

The main attention in the study case covered the successful partnership of Asian Agri and the partners – smallholders, including the company’s involvement with the smallholders to identify needs and conditions to conduct replanting program and model implementation of profit sharing to encourage the same responsibility.

Besides Asian Agri advantaged technology and training for the smallholders (the partners) to intensify production (by replanting in the same areas) to minimize chance of deforestation and degradation. The company keeps developing the good private – public partnership to confirm that the government’s programs and fund scheme will help every field challenge.

Managing Director Asian Agri, Kelvin Tio said, his side wants to encourage much more smallholders to conduct replanting which is the significant element of business strategies. His side needs to understand what the smallholders need of to conduct replanting.

Asian Agri’s sustainable commitment is the form of its value. “In Asian Agri, we work and embrace our main values, they are, good for community, good for country, good for climate, good for customer, good for company. We keep working to get the best quality and highest productivity and minimize economical, social, and environmental costs,” Kelvin said, as in the official statement to InfoSAWIT, Tuesday (14/12/2021).

In 2017, Asian Agri launched Komitmen Kemitraan Satu banding Satu which means, smallholder’s one-hectare area is proportional to one hectare of Asian Agri’s main plantation. Through the program, Asian Agri provides markets to ease smallholders selling their harvests. Besides, Asian Agri also delivers sustainable supports to increase their economy, and their plantation production, such as, training, helps, and modern tools.

Asian Agri also developed smallholders to get alternative income namely when they were waiting production in replanting program. Until now Asian Agri does partnership with more than 30 thousand smallholders and gets positive impacts for smallholders’ life to cultivate sustainable palm oil plantations in Indonesia. (T2)