Indonesian Ombudsman Studies Malaysian Smallholder Governance

Palm Oil Magazine
Chairman of the Indonesian Ombudsman, Mokhammad Najih, held discussions with the President of Persatuan Kebangsaan Pekebun-pekebun Kecil Malaysia (PKPKM), Adzmi Bin Hassan, regarding palm oil industry governance at the PKPKM office on Thursday, September 19, 2024. Photo by: Special

PALMOILMAGAZINE, KUALA LUMPUR – Chairman of the Indonesian Ombudsman, Mokhammad Najih, held discussions with the President of Persatuan Kebangsaan Pekebun-pekebun Kecil Malaysia (PKPKM), Adzmi Bin Hassan, regarding palm oil industry governance at the PKPKM office on Thursday, September 19, 2024. The talks focused on PKPKM’s significant role in supporting the welfare of smallholders and the success of various advocacy programs.

Najih expressed his appreciation for PKPKM’s efforts in improving smallholder livelihoods. He particularly praised the successful advocacy for the “Insentif Pengeluaran Getah” (IPG) program, which could serve as a model for similar initiatives in Indonesia. “This is an excellent example that could be implemented in Indonesia,” Najih stated, as quoted by Palmoilmagazine.com from the official Ombudsman page on Thursday, September 26, 2024.

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Earlier, the Ombudsman team conducted a field visit to Pachitan Village, Port Dickson, Negeri Sembilan, on Wednesday, September 18, 2024. During the visit, Najih highlighted PKPKM’s role as a liaison between smallholders, the Malaysian Palm Oil Board (MPOB), the government, and the monarchy, helping to address key issues like pricing and pests, including monkeys that disrupt palm oil plantations.

Also Read: Ombudsman Uncovers Maladministration in Kotim Palm Oil Plantation Governance

In Malaysia, the smallholders are defined as the plantation owners within about 2,5 to 40 hectares. Those who have more than 40 hectares are categorized as companies.

Adzmi Bin Hassan emphasized that the smallholders should compete in the global scale – economy. “Their production should be the same with the market price globally. We have to confirm that they should not be left behind,” Adzmi said.

Fresh fruit bunch that the smallholders produced in Malaysia should refer to the market price that MPOB decided every week. He continued the price would cover the seeds that MPOB managed. Palm oil SES fund was taken from every ton of palm oil mill production to support sustainable industries.

Besides, PKPKM also played its role to unite the smallholders, delivering information about the helps from the government, develop unions, get strategic cooperation and delivering training for the laborers. PKPKM also functions as the advocacy institute, gets complaints from the smallholders about the price and pests, and would be informed to Malaysia Public Complaint Bureau.

In the replanting program, Adzmi also said that the smallholders that got MSPO (Malaysia Sustainable Palm Oil) certificate, would get their rights to get certified seeds from the institution. Until now, 96% of the smallholders in the country got MSPO certificates, and the rest would accomplish their area issue that MPOB and local governments would deal with. (P2)

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