Jambi, 20 December 2024 – Asian Agri has expressed its appreciation for its scheme smallholder partners in Jambi Province by distributing premium payments from the sale of certified sustainable palm oil for 2023. The total amount of over IDR 2.38 billion was shared among 40 cooperatives (KUDs) comprising approximately 12,500 smallholder members. The event took place at EV Garden, Jambi, on 20 December 2024. This premium sharing programme is the company’s way of recognising scheme smallholders who consistently adopt sustainable plantation practices in compliance with certification standards.
Ramli Simarmata, Regional Head of Asian Agri for Jambi Region, explained that the programme aims to reward oil palm smallholders who adhere to internationally recognised sustainability standards, such as the Roundtable on Sustainable Palm Oil (RSPO) certification. “With RSPO certification, we can support the sustainable palm oil industry in international markets, particularly in Europe, where only sustainably sourced palm oil is accepted,” Ramli noted.
He added that the premium payments are expected to benefit over 12,500 smallholders, aligning with Asian Agri’s 5C philosophy. This philosophy emphasises that the company’s presence should bring value to the Community, the Country, the Climate, the Customer, and ultimately the Company.
Rudy Rismanto, Head of Partnership at Asian Agri, highlighted the role of partnerships in the company’s sustainability strategy. “Partnerships ensure a steady supply of raw materials for the company while benefiting smallholders. Asian Agri supports smallholders by providing guidance to optimise plantation management, guaranteeing the purchase of their palm fruit, and creating mutual advantages,” Rudy said. He also reaffirmed Asian Agri’s commitment to ensuring that the success achieved by the first generation of smallholders is sustained for future generations.
During the 2023 premium distribution, Agustian, Secretary of KUD Sawit Sumay Makmur, shared his journey. He admitted that initially, they were unaware of the importance of RSPO certification. “We didn’t understand the significance of RSPO certification at first. However, thanks to education and support from Asian Agri, we earned certification and received our first premium payment in 2013. These funds have been invaluable, particularly for infrastructure improvements, such as maintaining 14 kilometres of roads, acquiring personal protective equipment (PPE), and renovating our office. Additionally, we’ve conducted benchmarking activities to explore alternative incomes during replanting, including livestock, fish farming, and crop cultivation. We also received institutional strengthening training, including group dynamics,” Agustian said. He has now undertaken replanting with Asian Agri’s partnership programme, using Topaz seeds.
Similarly, Rahadi, Chairman of KUD Sawit Mulia, encouraged smallholders with unproductive plantations to proceed with replanting, noting the many advantages of the partnership model. “Our decision to transition our first-generation plantations to the second generation was based on the success of our partnership with Asian Agri. The company helped us secure IDR 60 million per plot in funding from BPDPKS, acted as an avalist or guarantor for bank loans, and even supported us in generating income during the replanting period through alternative livelihoods. With the support of our partners, the replanting process has been smooth and timely. I am confident that replanting through the partnership model is the best solution for smallholders,” Rahadi stated.
Basuki, Supervisor of KUD Makmur Rezeki, emphasised the importance of using high-quality seeds as a key factor for successful replanting. “Choosing the wrong seeds can lead to low productivity, which is detrimental over a planting cycle. We decided to use Topaz seeds after benchmarking against Asian Agri’s scheme partnership plantations in Riau. The results were impressive; even at the young plant stage (TM2), production reached 2.5 tonnes per hectare per month. Our partnership with Asian Agri has given us the confidence to enhance plantation productivity through high-quality seeds and sustainable practices,” Basuki 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
