#Malaysia #Kuala Lumpur #Sustainable Palm Oil #RSPO Conference #Smallholder Inclusion

RSPO Conference Advocates for Smallholder Empowerment through Technology

The Roundtable on Sustainable Palm Oil (RSPO) convened its Annual Roundtable Conference on Sustainable Palm Oil (RT2025) in Kuala Lumpur, Malaysia, on November 5, 2025, uniting key stakeholders to address critical issues in the palm oil industry. The event was a call to action for the increased adoption of technological advancements and solutions that empower smallholders, who currently represent about 40% of the total oil palm plantation area but often remain marginalized in various markets.

Enhancing Technology Adoption

The focal point of the discussions was the urgent need for stakeholders to embrace and implement existing technological and scientific solutions designed to improve productivity and sustainability within the sector. With a blend of smarter data, digitalization, and diligence, these tools have the potential to revitalize the industry amidst evolving legislative and geopolitical landscapes. Experts at the conference emphasized that while some regions may have differing sustainability standards, the principle of sustainability itself should be universally applied, making it imperative for all parties to find common ground.

H.E. Arif Havas Oegroseno, Vice Minister for Foreign Affairs of Indonesia, explained that the balance between social justice and economic development is crucial as the world moves towards sustainability. He reinforced the sentiment that sustainable practices cannot exist in isolation and require a collective effort to be effective.

Importance of Smallholders

A significant part of the discussion revolved around the importance of smallholder inclusion in changing the dynamics of the palm oil supply chain. RSPO CEO Joseph D'Cruz highlighted the paradox of smallholders, who, despite their hard work and commitment to sustainability—proven by obtaining RSPO Certification—face growing financial difficulties as demand for credit dwindles and government budgets are cut. The marginalized position of these smallholders is exacerbated by the disruptions caused by shifting policies regarding tariffs and subsidy allocations.

Pedro Seijas Cárdenas, a representative from the Peruvian smallholder group, urged for broader market incentives, including price premiums and access to finance, to support their inclusion on a larger scale.

Uniting for Sustainable Outcomes

Throughout the three-day event, speakers called for a unified commitment from the industry to prioritize the integration of smallholders into sustainable practices. Solutions discussed included risk-sharing arrangements, long-term contracts, and enhanced access to financial services to build resilience within communities.

This year also saw the introduction of a Memorandum of Understanding (MoU) between Malaysia's National Association of Smallholders (NASH), Asia School of Business (ASB), and the RSPO to bolster the capacity of smallholders and enable their access to international markets focusing on sustainability. 284,188 Independent Smallholders Credits worth US$6.5 million were recorded, directly benefiting 116 RSPO Certified groups.

Certification Expansion and Future Goals

Throughout 2025, RSPO Certification has expanded internationally, with new certified areas in São Tomé and Príncipe and Sri Lanka, bringing the total certified land area to 5.1 million hectares across 24 nations. An impressive 425,597 hectares of land have been conserved under RSPO Certification principles. According to D'Cruz, certification marks progress but represents only a fraction of the broader sustainability journey in palm oil production, emphasizing a need to measure success through community resilience and environmental conservation in addition to certified hectares.

The conference also introduced the youth initiative, YOUth @ RT2025, encouraging young leaders to engage in conversations about the future of sustainability in palm oil production. This endeavor aligns with the RSPO's commitment to a brighter future through collaborative efforts across generations.

Conclusion

In closing, RT2025 successfully brought together a diverse array of stakeholders from large producers to NGOs, emphasizing that collective action is essential for the advancement of a sustainable palm oil industry. The RSPO continues to pave the way for a transformed sector that prioritizes equity for smallholders, environmental conservation, and stable economic growth. As global awareness and demand for sustainable palm oil increase, the integration of all stakeholders, especially smallholders, remains vital for the overall success of the industry.