PALMOILMAGAZINE, JAKARTA – PT REA Kaltim Plantations (REA), a palm oil plantation company in Indonesia, has launched a new initiative called SHINES (SmallHolder INclusion for Ethical Sourcing). This program, running from 2025 to 2027, aims to empower independent smallholders to comply with stringent regulations, particularly the European Union Deforestation Regulation (EUDR) and the Roundtable on Sustainable Palm Oil (RSPO) certification.
As the world’s largest palm oil producer, Indonesia relies heavily on smallholders, who contribute approximately 41% of the country’s total production. However, with rapidly evolving regulations related to climate change and new plantings in forested areas, independent smallholders face significant challenges in meeting these new standards. SHINES is designed to help them remain productive while adhering to international regulatory standards.
The program will engage around 600 independent smallholders in the areas surrounding REA’s plantations in Kutai Kartanegara Regency, East Kalimantan. These smallholders will receive technical training and capacity building to ensure compliance with EUDR and RSPO standards. Through collaboration with the company, SHINES aims to help smallholders maintain their essential role in the sustainable palm oil supply chain.
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CEO RSPO, Joseph D’Cruz said that it would be the big challenges for the independent smallholders to obey every developing regultions. “SHINES program exists to answer the challenges by delivering knowledge and skills needed for them to be always relevant with global scale – palm oil industries,” he said, as in the official statement, as Palmoilmagazine.com quoted, Friday (11/10/2024).
Besides supporting to obey every regulation, SHNIES would target to conserve 10.000 hectares forests out of REA concession. By promoting sustainable practices, the program would protect the ecosystem and natural conservation around the plantations. Besides, REA would cooperate with the local to increase their sources of living by conducting empowerment programs.
Director of Sustainability, REA, Bremen Young emphasized it would be significant to involve the independent smallholders in sustainable development. “SHINES is the strong business sample that would unite every stakeholder to positively encourage the supply chains,” he said.
The launching of SHINES also conducted discussion among related parties, such as, RSPO, REA, and other companies to discuss what the independent smalllholders faced in EUDR. The discussion would be the start from the meaningful collaboration to create inclusive and sustainable palm oil supply chain.
Luke Robinow, President Director of REA said that SHINES would be progress to realize more inclusive and sustainable palm oil industries. “By having collaboration with the partners and the independent smallholders, we hope to deliver positive impacts for the environment and the local that depend on palm oil cultivation,” Robinow said. (P2)
