PALMOILMAGAZINE, JAKARTA – Musim Mas Group, one of the world’s largest integrated palm oil companies with core operations in Indonesia, successfully facilitated the sale of RSPO credits worth a total of IDR 20 billion for six smallholder associations under its guidance.
These six associations, part of the Gabungan Asosiasi Pekebun Sawit Inisiasi Musim Mas (GAPSIMA), are located in North Sumatra, Riau, and Kalimantan. Together, they consist of 4,654 smallholder members managing a total of 11,173 hectares of plantations. This year, all members of these associations have achieved RSPO certification.
RSPO-certified smallholders earn premiums for their sustainability efforts. By purchasing RSPO credits, buyers support sustainable palm oil production. Transactions are conducted through the RSPO PalmTrace platform, a marketplace and traceability system for certified RSPO products.
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As a mentor and supporter of smallholder, Musim Mas has bridged the sale of these credits to corporate partners.
Rob Nicholls, General Manager of Project & Program at Musim Mas Group, explained, “In line with the objectives of our Smallholder Empowerment Program to improve smallholder welfare, Musim Mas has been facilitating the sale of RSPO credits to corporate partners since 2020. This year, we successfully supported sales worth IDR 20 billion with one of our partners, Nestlé. To date, we have facilitated total RSPO credit sales amounting to IDR 59 billion. We’re pleased that these funds have been utilized effectively by smallholders,” Rob Nicholls explained in a statement received by Palmoilmagazine.com, Thursday (12/12).
For the GAPSIMA member associations, these incentives are crucial for enhancing organizational capacity and member welfare. Syahrianto, a smallholder and the chair of GAPSIMA, shared, “We allocate part of the RSPO credit sales proceeds to all members, providing additional funds for fertilization and plantation maintenance. The remaining funds are used for operational needs such as training, health checks, fertilizer procurement, audits, capacity building for managers, and asset development. We also improve members’ welfare by enrolling them in the BPJS Employment program and offering various social assistance programs funded through these proceeds.”
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With a strong commitment to sustainability in the palm oil industry, Musim Mas views smallholders as key stakeholders. The company has been running its Smallholder Empowerment Program since 2015, providing training and encouraging smallholders to form groups. These groups help strengthen smallholders’ capacity and promote good agricultural practices.
Group formation is also a requirement for ISPO and RSPO certification, as well as access to specific government programs. Currently, Musim Mas mentors six smallholder groups legally established as associations:
- Asosiasi Pekebun Swadaya Kelapa Sawit Labuhanbatu, North Sumatra
- Asosiasi Pekebun Swadaya Kelapa Sawit Negeri Seribu Kubah, Riau
- Asosiasi Pekebun Swadaya Kelapa Sawit Pelalawan Siak, Riau
- Perkumpulan Pekebun Swadaya Kelapa Sawit Rokan Hulu, Riau
- Asosiasi Pekebun Swadaya Kelapa Sawit Mitra Sambas Jaya, West Kalimantan
- Asosiasi Pekebun Swadaya Kelapa Sawit Trahayu Barito Utara, Central Kalimantan.
(P3)