Pekanbaru, 12 December 2024 – Asian Agri has demonstrated its appreciation for its partnered scheme smallholders by distributing premium sharing from certified sustainable palm oil sales in 2023. The total premium, exceeding IDR 3.8 billion, was shared among 38 cooperatives (KUD), representing approximately 15,000 smallholders. The distribution event was held at the Grand Jatra Hotel on 12 December 2024. This premium sharing initiative highlights the company’s recognition of smallholders who consistently adopt sustainable plantation practices in line with certification standards.
Pengarapen Gurusinga, Regional Head of Asian Agri for Riau Province, stated, “The purpose of this appreciation is to motivate scheme smallholders to maintain and enhance the quality of their plantations while ensuring the sustainability of their certifications, particularly the Roundtable on Sustainable Palm Oil (RSPO).” He added that with RSPO certification, smallholders can support a sustainable palm oil industry in international markets, particularly in Europe, which only accepts palm oil products meeting sustainability principles.
Rudy Rismanto, Head of Partnership at Asian Agri, said, “Partnership is a cornerstone of the company’s sustainable business strategy. Through partnerships, the supply of raw materials is more secure, while smallholders benefit significantly. Partnerships enable guidance for smallholders in managing their plantations to optimise yields and ensure the purchase of their fresh fruit bunches, creating a win-win scenario for both parties.” Rudy also emphasised Asian Agri’s commitment to ensuring the success achieved by the first generation is sustained for future generations.
At the event, Sudiyono, Chairperson of KUD Jaya Makmur, shared that his partnership with Asian Agri began in 1990, now entering its 35th year. Throughout this partnership, he and other smallholders have consistently received guidance on best practices in oil palm cultivation, enabling them to manage their plantations optimally. “Asian Agri has also assisted us in completing all administrative requirements for certification. With this strong collaboration, we received our first premium sharing in 2013 and have continued to receive it annually,” said Sudiyono. He explained that the premium funds are used to strengthen the group’s activities and prepare for alternative income sources during the oil palm replanting process.
Anton Suhartono, Secretary of KUD Sawit Subur and a second-generation scheme smallholders partnering with Asian Agri, highlighted the partnership’s benefits, including assistance with administrative processes for applying for funds from the Palm Oil Plantation Fund Management Agency (BPDPKS) and support in sustainable plantation management. “This partnership provides comfort, as the company also acts as an avalist/guarantor for bank credit applications,” he explained. Anton stressed the importance of using Asian Agri’s superior Topaz seeds during replanting, which have proven to boost productivity to 28 tonnes per hectare by the third year of harvest. Moreover, initial harvests begin at 30 months, faster than other seeds, which typically take about 36 months. “In 2019, our cooperative replanted 538 hectares, and in 2024, we undertook the second phase, covering 144 hectares,” he added.
Anton expressed no concerns about losing income during the replanting period, thanks to the support provided by both the government, in the form of BPDPKS funds, and Asian Agri, through premium sharing funds allocated for alternative income preparations. Examples include organic free-range chicken farming, ensuring smallholders have income during the waiting period.
Irwan Ritonga, Chairperson of KUD Bukit Makmur and a first-generation scheme smallholders, also shared his experience, saying, “During the first generation, the company provided technical assistance for sustainable plantation management. I am grateful for this partnership with Asian Agri, which has significantly improved my family’s economic condition. This has strengthened my resolve to continue the partnership with the company.” Entering the second generation, Irwan entrusted the replanting process to Asian Agri as experts in the field. “Like other Asian Agri partner smallholders, I received assistance in applying for BPDPKS funds through the PSR programme. Additionally, we recognise the importance of using the proven superior Topaz seeds to achieve maximum plantation results,” he concluded.
About Asian Agri
Founded in 1979, Asian Agri is one of Indonesia’s foremost companies in crude palm oil production, managing over 100,000 hectares of oil palm plantations and employing over 20,000 people.
As a pioneer of the Indonesian Government’s Smallholder Transmigration Core Plantation Programme (PIR-Trans), Asian Agri has partnered with 30,000 scheme smallholders in Riau and Jambi, who collectively manage 60,000 hectares of oil palm plantations. The company also fosters partnerships with independent smallholders to enhance their welfare and drive socio-economic growth.
Committed to sustainable practices, Asian Agri upholds a zero-burning policy and implements plantation best management practices to help smallholders boost productivity, increase crop yields, and improve supply chain traceability, while supporting their journey towards certification. Asian Agri’s mills leveraged advanced technology and self-generated green energy to minimize greenhouse gas emissions.
Asian Agri’s plantations, as along with their scheme smallholder plantations, are fully Roundtable on Sustainable Palm Oil (RSPO) and International Sustainability & Carbon Certification (ISCC) certified, underscoring the company’s commitment to responsible and sustainable palm oil production.
Please visit Asian Agri website for more information and media inquiries may be directed to:
Corporate Communications, Asian Agri
E-mail : lidya_veronika@asianagri.com
