PALMOILMAGAZINE, LAMANDAU — Independent oil palm smallholders in Lamandau, Central Kalimantan, are demonstrating that sustainable practices can translate into tangible financial gains.
Village-owned enterprise (BUMDes) Berkah Mulya Jaya, based in Sematu Jaya District, recorded strong performance in managing sustainable palm oil plantations led by independent farmers. A total of 506 smallholders received cash incentives amounting to IDR 737 million from the sale of RSPO credits under the Book and Claim scheme throughout 2025.
The incentive reflects the economic value of sustainability certification, reinforcing the importance of consistent implementation of sustainable palm oil standards at the smallholder level.
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Chairman of BUMDes Berkah Mulya Jaya, Choirul Fuadi, said the payout was the result of farmers’ ongoing commitment to meeting sustainability principles and criteria.
“This incentive distribution proves that independent smallholders’ dedication to sustainable practices delivers real outcomes, both economically and environmentally,” he noted.
According to data from FORTASBI, total credit value secured from buyers—including Nestlé—reached IDR 1.74 billion. The funds were allocated across multiple purposes, including village revenue, farmers’ social responsibility programs, business reserves, and environmental conservation initiatives.
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Part of the funds was directed toward orangutan conservation (IDR 15 million) and village forest support (IDR 5 million). The largest share—IDR 737.3 million—was distributed directly to participating farmers, marking a roughly 50% increase compared to the previous year.
“This marks our third credit sale period. We hope buyer support will continue, enabling independent smallholder management to better meet global market demands,” Choirul added.
Deputy Regent of Lamandau, Abdul Hamid, who attended the incentive handover, praised the achievement.
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“This incentive is not merely economic value—it represents recognition of farmers’ commitment to environmental stewardship. It is a progressive step that can serve as a model for other villages,” he said.
He emphasized that the program delivers broader impacts, improving farmer welfare while supporting environmental sustainability at the regional level.
“By maintaining a balance between profitability and environmental preservation, Lamandau is optimistic about achieving sustainable development,” he added.
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A Model for Sustainable Palm Oil
The success of BUMDes Berkah Mulya Jaya is increasingly seen as a model for village-based sustainable palm oil management that delivers simultaneous economic, social, and environmental benefits.
The program has gained support from multiple stakeholders, including local government, private sector partners, and assisting institutions, all working together to promote sustainable practices among independent smallholders.
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With this achievement, Lamandau continues to strengthen its position as one of Indonesia’s leading regions in advancing sustainable palm oil transformation at the grassroots level. (P2)
