#Denmark #Jakarta #Musim Mas #Ferrero #Danish Government

Collaboration for Sustainable Palm Oil Production in Indonesia

In a significant effort towards eco-friendly palm oil production, the Danish government has initiated a partnership with several organizations including Ferrero, Musim Mas, and NGOs like Preferred by Nature, SAN, and Agriterra. This collaboration aims to promote inclusivity and sustainability in the production of palm oil in Indonesia, a country pivotal in the global palm oil supply chain.

This initiative, termed the Rokan Hulu Landscape and Livelihoods Initiative, will focus on empowering smallholder farmers who make up a considerable portion of palm oil producers in Indonesia. Through this five-year project, about 5,400 smallholders will be targeted to adopt regenerative agricultural practices that enhance soil health, reduce synthetic inputs, and bolster climate resilience.

One of the core objectives of the initiative is to strengthen agricultural organizations and facilitate certification for 2,500 farmers under recognized standards, such as the Roundtable on Sustainable Palm Oil (RSPO) certification and the Indonesian Sustainable Palm Oil (ISPO) standards. Additionally, the initiative aspires to create diversified income opportunities for 2,000 community members, particularly focusing on empowering women, who represent 60% of these beneficiaries.

The initiative is not just about improving farming practices; it also seeks to address environmental concerns by implementing biodiversity conservation measures and mitigating deforestation risks. A key component will be the establishment of a multi-stakeholder jurisdictional alliance aimed at ecosystem restoration, thereby aligning with global sustainability standards, including the EU Deforestation Regulation (EUDR).

Partner Organizations
Preferred by Nature, a Denmark-based NGO with substantial experience in sustainable agriculture and forestry projects, leads the coordination of training and capacity-building activities for sustainable practices. The Dutch agricultural agency, Stichting Agriterra, will work on enhancing farmer organizations' viability and advocate for cooperative business models. International NGO SAN will provide its expertise in regenerative agriculture and support the endeavor by collaborating with local partners in Indonesia.

Musim Mas and Ferrero both share a common interest in establishing a sustainable and traceable palm oil supply chain that adheres to regulatory standards as well as voluntary commitments. By addressing systemic challenges in the supply chains of independent smallholders, which include low productivity and unequal access to sustainable agricultural knowledge, this project endeavors to break down barriers that hinder compliance with RSPO and ISPO standards.

Efforts will be made at the landscape level to foster an alliance among businesses, governments, and civil society actors to enhance ecosystem protection. This collaborative approach is vital for safeguarding biodiversity and aligning with sustainable development norms globally.

Creating a Sustainable Production Model
By uniting private sector commitments with the expertise of NGOs, the Rokan Hulu initiative sets a benchmark for sustainable palm oil production. Smallholders stand to gain from increased productivity, better market access, and diversified income streams, while companies like Ferrero and Musim Mas can ensure a reliable and sustainable palm oil supply chain.

This transformative initiative is expected to yield long-term economic benefits for rural communities, supporting global climate goals and showcasing Rokan Hulu as a model for sustainable palm oil production. It is a crucial step towards building a more sustainable and inclusive palm oil industry.

Olivier Tichit, Communication and Sustainability Director at Musim Mas, emphasized, "Empowering smallholders through training and support is vital for establishing a resilient and sustainable palm oil supply chain. In areas where we work, we engage with local governments, suppliers, farmers, NGOs, and other stakeholders to achieve lasting transformation. This project allows us to contribute a new dimension to our sustainability efforts."

Similarly, Nicola Somenzi, Responsible Sourcing Manager at Ferrero, noted, "We aim to create a thriving supply chain that enriches farmers' livelihoods while protecting people and nature. Beyond sourcing certified RSPO palm oil for our products, actively participating in initiatives like this strengthens the foundation for a resilient and environmentally-friendly supply chain that delivers long-term value for all stakeholders."

The involvement of various partners highlights how concerted efforts can transform palm oil production into a model that both revitalizes ecosystems and enhances farmers’ livelihoods. This initiative stands testament to collaborative problem-solving in the quest for sustainability in agriculture.