PALMOILMAGAZINE, JAKARTA – Pujuh Kurniawan, Indonesia Sustainability Lead at Wilmar International’s Group Sustainability, emphasized the importance of good governance and certification in improving palm oil farmers’ income and welfare. He highlighted three key factors that must be considered to enhance farmers’ prosperity in the palm oil industry.
“In addition to using the right techniques and superior varieties, switching to tenera palm oil can increase yields. However, fertilization and governance also play a crucial role in boosting productivity,” said Pujuh Kurniawan at Wilmar’s Iftar gathering with the media in Jakarta on Friday (March 7, 2025), as reported by Palmoilmagazine.com.
He explained that Wilmar’s programs indicate that market access is a crucial factor for farmers. However, surveys show that farmers prioritize price improvements and certification as their main strategies to increase income.
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“We observed an interesting pattern where farmers prefer better prices and certification over new business models, such as those offered by the Sakato Jaya Lestari Cooperative. Therefore, we are developing various business schemes to ensure quality improvement and better farmer welfare,” he added.
One of the models being developed focuses on improving production quality and optimizing harvest sales. This program also rewards farmers who maintain high production standards.
However, Pujuh stressed that increasing farmers’ welfare cannot rely solely on price incentives. “There must be a balance in organization, governance, and understanding of product quality. This way, farmers not only receive better prices but also enhance their competitiveness in the market,” he concluded. (P2)
