PALMOILMAGAZINE, Lamandau — Sustainable palm oil is not driven by large corporations alone. At the village level, Badan Usaha Milik Desa (BUMDes) Berkah Mulya Jaya (BMJ) has emerged as a living example of how independent smallholders can apply environmental, social, and governance (ESG) principles through concrete action.
Throughout 2025, RSPO-certified BUMDes BMJ secured approximately IDR 1.2 billion in sustainability credits through the book-and-claim mechanism, a sharp increase from around IDR 762 million the previous year. The stronger financial performance has significantly expanded the cooperative’s ability to fund innovation programs that directly support the long-term sustainability of community-based palm oil operations.
Director of BUMDes Berkah Mulya Jaya, Choirul Fuadi, said RSPO credits have become the financial backbone of the organization’s environmental and conservation initiatives. The funds are specifically allocated to support ESG implementation among independent smallholder members.
Toward the end of 2025, BUMDes BMJ rolled out one of its flagship programs by allocating IDR 21 million to village forest management and an orangutan adoption program on Salat Island, Central Kalimantan. The initiative is carried out in collaboration with the Borneo Orangutan Survival Foundation (BOSF), reflecting the cooperative’s commitment to protecting biodiversity around smallholder plantation areas.
“This funding allocation represents our responsibility to safeguard the environment surrounding our members’ plantations,” Choirul said, as quoted by Palmoilmagazine.com from Fortasbi, Tuesday (13/1/2026). “Sustainability must go beyond certification. It has to be translated into real actions that benefit nature and local communities.”
He explained that RSPO credits have now become a strategic pillar for BUMDes in delivering high-impact programs while also improving services for its members, most of whom are independent oil palm farmers. Choirul expressed hope that more global buyers would support RSPO credits generated by smallholders as part of a shared commitment to advancing sustainable palm oil.
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“Smallholders still need broad support. We cannot move forward alone in implementing sustainability principles and criteria,” he said.
With continued backing, Choirul is optimistic that independent farmers can “move up the value chain”—not only by strengthening human resource capacity, but also by deepening environmental awareness and reinforcing social responsibility across the plantation sector. He also extended appreciation to all stakeholders who have consistently supported the struggle of smallholder palm oil farmers.
Currently, BUMDes Berkah Mulya Jaya oversees 128 RSPO-certified farmers managing a total plantation area of 556.7 hectares. These farmers are organized into five groups based in Mekar Mulya Village, Sematu Jaya Sub-district, Lamandau Regency, Central Kalimantan. From this rural base, community-driven sustainable palm oil practices continue to grow—offering renewed optimism for the future of Indonesia’s smallholder plantation sector. (P2)
