Palmoilmagazine, Rachmad Rhomadhani, Sawitfest 2021
Palmoilmagazine, MEDAN – As one palm oil plantation company in national scale, Musim Mas Group got one brave action to do when smallholders’ fresh fruit bunch (FFB) gets cheaper.
Head of Corporate Affairs at Musim Mas Group, Gunawan Siregar said, this is about to support independent smallholders who sold their FFB to the mills of Musim Mas Group.
Siregar thought, the increasing price as the phenomenon in the globe has been happening in Indonesia. The company knew, fuel, fertilizers, and food materials increase two to three times more and influence millions of smallholders.
The smallholders sold their production to the mills and the mills process it to be crude palm oil (CPO) and palm kernel (PK). By having abundant FFB, their production gets cheaper up to Rp 1.200 per kg, from the previous, Rp 3.000 – Rp 3.500 per kg.
“Many would not know that FFB gets cheaper but millions of smallholders are in the line for this issue. As the group which positions the smallholders as the core of what we do, we decided to purchase their FFB much more expensive from the market price, at Rp 1.600 per kg to support them,” Siregar said, as in the official statement to Palmoilmagazine, Wednesday (29/6/2022).
He also mentioned, Musim Mas prioritizes the source of living of the smallholders to realize sustainability and support the regional and central governments to escalate the smallholders’ welfare.
“The company directly trains the smallholders in the mills, and the third supplies by conducting the biggest independent smallholder program in Indonesia,” Siregar said.
Musim Mas increased its efforts by conducting cooperation with the government’s initiatives. The company delivered training and capacity enhancement for the village’s counselors by having Smallholders Hub. (T5)