Cargill Gave Sustainable Palm Oil Premium Rp 2,5 Billion to 7 Unions

Cargill Gave Sustainable Palm Oil Premium Rp 2,5 Billion to 7 Unions

PalmOilMagazine, KETAPANG – About Rp 2,5 billion (or US$ 165 thousand) of Roundtable on Sustainable Palm Oil (RSPO) premium was given by subsidiary of Cargill, PT Harapan Sawit Lestari (HSL), PT Indo Sawit Kekal (ISL) dan PT Ayu Sawit Lestari (ASL) to seven smallholders’ unions in District of Ketapang. It was symbolically given on Thursday (8/4/2021) in a hotel in district of Ketapang, West Kalimantan Province.

The seven are KUD Bakti Mandiri Cemerlang, KUD Sepakat Mekar, KUD Beringin Jaya Lestari, Koperasi Sepakat Sejahtera Lestari, Koperasi Harapan Lestari Mandiri, Koperasi Barokah Mitra Mandiri, and Koperasi Mitra Lestari that represent more than 4,000 plasma smallholders in the district.

It was also attended by Vice Regent of Ketapang, H.M. Farhan and his officers; Chairman of Ketapang Legislators, M. Febriadi, and President Director of Cargill Tropical Palm in Kalimantan, Anthony Yeow; and the chairman of the unions.

RSPO premium was given as part of the commitment of Cargill to help the plasma smallholders to develop. The company always supports the plasma to adopt and implement the best, responsible, and sustainable practices by getting RSPO certificate and premium price.

The RSPO premium numbers got by the seven unions in fiscal year of Cargill which ended on 31 May, increased 17 percent in total or more than the numbers in last years which reached 2,1 billion rupiah. The plasma collectively cultivated more than 7,800 hectares of palm oil plantation developed by Cargill in Ketapang.

“The good cooperation with Cargill for all these years pays the good result to the sustainability of our union and members. The sustainable practices in ours from Cargill help us the plasma to understand more about the condition system globally. Through the best and sustainable practices, these gives the positive outcome reflected in the premium distribution for RSPO products,” Chairman of KUD Sepakat Mekar in Village of Air Upas, Robertus Herman said, as in the official statement to PalmOilMagazine, Thursday (8/4/2021).

Meanwhile President Director of Cargill Tropical Palm in Kalimantan, Anthony Yeow told that the premium distribution of RSPO products for the plasma smallholders is the same with the commitment of Cargill to the transparent, traceable, and sustainable palm oil supply chain. “And encourage the plasma to be the successful stakeholders and increase their sources of living by producing sustainable palm oil,” he said.

Back to February 2021, Cargill Tropical Palm in Kalimantan also distributed RSPO premium within the total Rp 1,7 billion (about US$ 112 thousand) to 3.300 plasma smallholders covering about more than 6.800 hectares. The total RSPO premium given in the fiscal year reached almost Rp 4,2 billion (about US$ 278 thousand) or three times more than the numbers in last year and profitable for more than 7.300 plasma smallholders. 

“Cargill is in partnership with more than 20.000 plasma smallholders in Indonesia for more than two decades. We would do partnership with more plasma for the years to come and develop them and independent ones to do safe, responsible, and sustainable agricultural practices,” Yeow said. (T2)

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