#Denmark #Jakarta #Musim Mas #Danish Government #Palm Oil

Danish Government Collaborates for Sustainable Palm Oil in Indonesia

The Danish government has launched a collaborative initiative with several key partners, including Preferred by Nature, Ferrero, SAN, Agriterra, and Musim Mas, to advance the sustainable production of palm oil in Indonesia. This notable effort, known as the Rokan Hulu Landscape and Livelihoods Initiative, aims to create a more inclusive and resilient palm oil production system that prioritizes environmental protection and the livelihoods of local farmers.

A Collaborative Approach

This initiative brings together various stakeholders within the palm oil sector, combining the expertise of private companies and non-profit organizations. Musim Mas, a global palm oil company, and Ferrero, a well-known confectionery manufacturer, are both committed to establishing a sustainable supply chain that aligns with global sustainability standards and regulatory frameworks, including the European Union's Deforestation Regulation (EUDR).

Financed by the Danish Green Business Partnerships program, this five-year project will focus on empowering 5,400 independent smallholder farmers. The aim is to foster the adoption of regenerative agricultural practices that improve cultivation conditions, reduce synthetic inputs, and enhance climate resilience. Additionally, 2,500 farmers will receive assistance to meet the certification standards of the Roundtable on Sustainable Palm Oil (RSPO) and the Indonesian Sustainable Palm Oil (ISPO).

Enhancing Farmer Livelihoods

Beyond improving agricultural practices, the initiative is designed to create diversified income opportunities for over 2,000 community members, with a significant emphasis on women, who will comprise 60% of the beneficiaries. This aspect underscores the initiative's commitment to gender inclusivity while simultaneously taking measures to safeguard biodiversity and mitigate deforestation risks.

A cornerstone of the initiative is the establishment of a multi-stakeholder jurisdictional alliance aimed at promoting ecosystem restoration and ensuring compliance with sustainability norms. Preferred by Nature, an international NGO based in Denmark, is spearheading the project's coordination, capacity building, and training on sustainable practices. The Netherlands-based agricultural organization, Stichting Agriterra, will focus on strengthening farmer organizations and creating sustainable financial models to support cooperative business frameworks, thereby enhancing economic viability for farmers.

Addressing Systemic Challenges

The initiative targets systemic challenges faced by smallholder farmers, such as low productivity, varying levels of awareness regarding sustainable practices, environmental degradation, and soil health deterioration. Smallholders manage over 40% of palm oil planted in Indonesia, yet encounter various barriers in meeting RSPO and ISPO standards, including resource scarcity and lack of access to necessary knowledge and land tenure issues.

By equipping these farmers with the necessary tools, training, and market access, the project strives to break down these barriers and facilitate the adoption of sustainable practices and certifications.

Furthermore, the project encourages stakeholder collaboration at the landscape level, uniting business, government, and civil society actors to enhance ecosystem protection. These joint efforts are crucial in preserving biodiversity and aligning with global sustainability norms, such as the EUDR.

Setting a Benchmark for Sustainable Palm Oil

Through a unique combination of private sector commitments and the expertise of NGOs, the Rokan Hulu Landscape and Livelihoods Initiative not only establishes a benchmark for sustainable palm oil production but also presents a win-win scenario for all parties involved. Farmers stand to gain from increased productivity, improved market access, and diversified income streams, while partners like Ferrero and Musim Mas can ensure a reliable, sustainable, and traceable supply chain.

Moreover, the initiative promises long-term economic benefits for rural communities, contributing to global climate goals and positioning the Rokan Hulu region as a leading example of sustainable palm oil production. By addressing systemic challenges and fostering collaboration, this transformative initiative paves the way for a more resilient and environmentally responsible supply chain that ultimately benefits all stakeholders.

In conclusion, Olivier Tichit, Musim Mas’s Director of Communication and Sustainability, stated, "Empowering small farmers through training and support is key to building a resilient and sustainable palm oil supply chain." He further emphasized the significance of landscape-based collaboration, involving governments, suppliers, farmers, NGOs, and other stakeholders, to achieve sustainable transformation.

As Ferrero’s Responsible Sourcing Manager, Nicola Somenzi, articulated, “Our goal is to create a thriving supply chain that benefits farmers' livelihoods while protecting nature.” This initiative, thus, marks a significant step towards sustainable palm oil production, reinforcing the collective commitment to foster a responsible and resilient agricultural landscape.