642 Smallholders Got Sustainable Premium Price Rp 480 Million from PT KAL

642 Smallholders Got Sustainable Premium Price Rp 480 Million from PT KAL

InfoSAWIT, KETAPANG – PT Kayung Agro Lestari (KAL), the subsidiary of dari PT Austindo Nusantara Jaya Tbk (ANJ) handed over certified sustainable palm oil price for about Rp 480.336.648 to Koperasi Laman Mayang Sentosa (LMS) that managed 624 smallholders at the office of Koperasi LMS, Village of Laman Satong, Sub district of Matan Hilir Utara, last week (2/3/2022). The premium price increased 48% from the previous year.

This is the appreciation for the sustainable cultivation commitment that every smallholder in Koperasi LMS has done in their palm oil plantations.

“The premium price is about to motivate smallholders to implement the best agricultural practices in their plantation and to keep maintaining what they achieved,” General Manager of KAL, Dadi, said as in the official statement to InfoSAWIT.

He also mentioned the smallholders’ development by KAL would be positive to welfare the smallholders. In cooperation with the local plantation and agency and cooperation agency, PT KAL trained about best cultivation practices to notice environment, social, legal, labor, health, work safety, and other sustainability aspects.

Through PT KAL’s management, the fresh fruit bunch (FFB) that smallholders’ produced to its mill was processed to be crude palm oil and palm kernel oil which were in Roundtable on Sustainable Palm Oil (RSPO) certificate. When the two products are sold, they got premium price.

Chairman of Koperasi LMS, Yermias said, the premium price is the evidence that palm oil production by the smallholders in Koperasi LMS fulfilled sustainability standards. This is realized by the fantastic development from PT KAL’s professional and sustainable standard management.

“Partnership program should deliver advantages, not only for the two partners but also for the environment in real life. The premium price would be taken for advantages well and useful for the future cooperation development sustainably,” Yeremias said. (T2)