#Indonesia #Sustainable Palm Oil #Musim Mas #Ferrero #Rokan Hulu

Enhancing Palm Oil Production Through Sustainable Partnerships

In a significant move toward sustainable agriculture, the Danish government has launched a new initiative aimed at transforming palm oil production in Indonesia. This plan, called the Rokan Hulu Landscape and Livelihoods Initiative, involves key collaborations with organizations such as Musim Mas, Ferrero, and sustainability-focused NGOs like Preferred by Nature, Agriterra, and the Sustainable Agriculture Network (SAN).

A Need for Change in Palm Oil Production

The pressing need for a more inclusive, sustainable, and resilient palm oil industry has led to this partnership. As palm oil is one of Indonesia's largest agricultural exports, the sustainability of its production is crucial not only for environmental health but also for the livelihoods of over 5,400 independent small farmers involved in the sector. These farmers often face challenges such as low productivity, limited access to knowledge on sustainable farming practices, and environmental setbacks, including declining soil quality.

Objectives of the Initiative

The Rokan Hulu initiative aims to address these challenges by implementing scalable solutions that promote regenerative agricultural methods. The goals are multifaceted:

• - Training and Support: Providing education and resources to smallholder farmers to enhance agricultural practices, reduce the reliance on synthetic inputs, and improve their resilience to climate change.
• - Certification Assistance: Helping farmers obtain certification under the Roundtable on Sustainable Palm Oil (RSPO) and Indonesian Sustainable Palm Oil (ISPO) standards. This move not only boosts their market access but also aligns with global sustainability benchmarks, including the EU’s deforestation regulation (EUDR).
• - Diversifying Income Streams: Creating alternative income opportunities for about 2,000 community members, particularly focusing on empowering women, as 60% of these individuals will be female participants.
• - Ecosystem Restoration: Establishing a coalition of stakeholders—businesses, governments, and civil society—to advance ecosystem restoration efforts and enforce sustainability standards.

The Role of Collaboration

Preferred by Nature, with its extensive expertise in sustainable agriculture, will manage project coordination while enhancing capacity-building efforts. Meanwhile, Agriterra will focus on empowering farmers' unions, fostering financial sustainability, and promoting cooperative business models. The SAN organization will provide in-field support to implement regenerative farming practices.

Musim Mas and Ferrero share a commitment to establishing reliable, sustainable, and traceable palm oil supply chains that comply with legal standards and exceed voluntary commitments. Both companies recognize that achieving these objectives necessitates systemic changes within the supply chain.

Increasing Productivity and Ecosystem Protection

This ambitious project also seeks to tackle prevalent systemic issues within palm oil supply chains. Independent smallholders, who manage over 40% of Indonesia's palm oil plantations, often struggle to meet RSPO and ISPO standards due to various barriers, including resource constraints and unequal access to land and knowledge. By equipping farmers with necessary tools and education, the initiative aims to eliminate these barriers, enabling them to apply sustainable methods and gain better market access.

At a regional level, the project promotes a multi-stakeholder alliance, enhancing ecosystem protection while supporting compliance with global sustainability standards like the EUDR.

Setting New Standards for Palm Oil Production

The Rokan Hulu Landscape and Livelihoods Initiative serves as a model for sustainable palm oil production, balancing private sector engagement with nonprofit expertise. It benefits all parties involved: farmers gain increased productivity, improved market access, and diversified incomes, while partners like Musim Mas and Ferrero ensure a stable and sustainable palm oil supply chain.

Moreover, this initiative is expected to generate long-term economic benefits for rural communities, contribute to global climate goals, and position the Rokan Hulu region as a leading example of sustainable palm oil production practices.

Olivier Tichit, the Director of Communication and Sustainability at Musim Mas, emphasized the importance of supporting smallholders through education and resources. This approach underpins a resilient and sustainable palm oil supply chain.

Nicola Somenzi from Ferrero reiterated the company’s goal of creating a thriving supply chain that secures farmers' livelihoods while protecting both people and nature. This holistic strategy showcases the dedication of all partners toward establishing a robust and environmentally responsible palm oil industry for the future.

By addressing systemic challenges and fostering collaboration among various stakeholders, this transformative initiative marks a significant step towards a more sustainable and inclusive palm oil sector in Indonesia.