The state-owned plantation company aims to develop a cooperative-based partnership model that could expand smallholder participation in palm oil plantations and downstream processing.
PALMOILMAGAZINE, JAKARTA — PT Agrinas Palma Nusantara (Persero) is preparing a pilot project to develop a palm oil plasma partnership with smallholders organized through cooperatives in North Sumatra. The initiative is intended to establish a partnership model that could later be replicated in other regions.
Agrinas Palma Nusantara President Director Mohammad Abdul Ghani said the pilot project is being developed with support from the Ministry of Cooperatives as part of efforts to establish a stronger partnership between Agrinas and oil palm smallholders through cooperatives.
Also Read: Agrinas Palma Strengthens Cooperative-Based Plasma Partnerships with Government Support in Riau
“We will conduct a pilot project, with support from the Minister of Cooperatives, in North Sumatra to establish a plasma partnership between Agrinas and farmers organized through cooperatives. We will then use it as a model in other locations,” Ghani said after attending the National Seminar on Cooperative-Based Palm Oil Downstreaming in Musi Banyuasin, South Sumatra, on Tuesday.
According to Ghani, as a state-owned enterprise, Agrinas Palma Nusantara will develop partnership schemes with cooperatives in several areas. Cooperatives could serve as business partners or vendors, while also participating in the development of palm oil plasma plantations.
Also Read: Indonesia Pushes Cooperative-Based Palm Oil Downstreaming to Strengthen Smallholders
Palm Oil Plasma Plantations Become Part of Agrinas-Cooperative Partnership
Ghani said the partnership scheme is also linked to regulations requiring a minimum 20% of plantation areas to be allocated for the development of smallholder oil palm plantations.
“Going forward, in managing the company, we will partner with cooperatives, both as vendors and in connection with the development of palm oil plasma plantations in areas where regulations require at least 20% to be allocated for or developed as smallholder plantations,” he said.
Also Read: Agrinas Palma and Ashok Leyland Explore Partnership to Modernize Plantation Logistics and EV Fleet
Agrinas is also open to partnerships with cooperatives in other parts of Indonesia. Cooperatives interested in collaborating can coordinate with Agrinas’ regional or local management teams in their respective areas.
Agrinas Palma Nusantara is a state-owned enterprise assigned by the government to manage oil palm plantations resulting from enforcement measures against plantations operating in forest areas. Ghani said around 4.1 million hectares of land resulting from the Task Force for Forest Area Enforcement (Satgas PKH) have been entrusted to Agrinas Palma Nusantara for management.
Cooperatives Seen as Key to Greater Smallholder Participation
Minister of Cooperatives Ferry Juliantono, who also attended the event, said cooperative-based palm oil development is important to expand community participation, particularly among smallholders, in managing land under Agrinas Palma Nusantara.
Ferry said collaboration between Agrinas and cooperatives should not only strengthen farmers’ role in upstream plantation activities but also contribute to improving palm oil governance and expanding downstream processing.
Also Read: KPBN Inacom CPO Prices Withdraw as Malaysian Palm Oil Futures Close Higher
“The President wants the management of PT Agrinas Palma Nusantara to involve communities, including cooperative members who are, in fact, oil palm farmers,” Ferry said.
He added that cooperatives have significant potential to play a larger role throughout the palm oil value chain. Beyond managing plantations, cooperatives can develop businesses in processing and downstream industries.
Ferry cited KUD Sejahtera Banyuasin as an example of a cooperative that has expanded its palm oil business by developing a crude palm oil (CPO) processing mill. He said the cooperative’s experience could serve as a model for palm oil cooperatives in other regions.
Also Read: Malaysian CPO Futures Rise, February 2027 Contract Tops RM5,000 per Tonne
Cooperative-based downstream development is expected to increase the value captured by farmers and local communities in palm oil-producing regions. Processing fresh fruit bunches and developing palm oil-based products closer to production areas could also generate broader economic activity at the local level.
Through the pilot plasma partnership in North Sumatra, Agrinas Palma Nusantara and local cooperatives are expected to establish a collaborative model that goes beyond plantation management. The initiative could provide oil palm smallholders with broader opportunities to participate across the palm oil value chain, from plantation development to processing and downstream industries. (P2)
