PALMOILMAGAZINE, JAKARTA – Leading palm oil company Musim Mas is entering the fourth year of its strategic collaboration with global food and beverage giant Nestlé and vegetable oil producer AAK. Launched in 2021, this innovative landscape-based partnership aims to address environmental, social, and economic challenges faced by independent smallholder farmers in Indonesia. The initiative, called the Smallholders Hub, is supported by funding from Nestlé and AAK during its initial two years.
The Smallholders Hub is a landscape-focused program initiated by Musim Mas to train both independent farmers and local agricultural extension officers (PPLs) in Good Agricultural Practices (GAP) and NDPE (No Deforestation, No Peat, No Exploitation) principles. These trained officers then transfer their knowledge to the farmers they work with, empowering them to implement sustainable practices on their own plantations.
Initially focused on curbing deforestation outside concession areas in Subulussalam, Aceh, the program has since evolved to support smallholders in addressing broader social and economic issues. Since its inception, the program has directly trained 1,581 smallholders—surpassing the original target of 1,250—and 117 PPLs, nearly doubling the initial target of 60. Of these, 20 top-performing PPLs have received advanced training to prepare for ISPO (Indonesian Sustainable Palm Oil) certification and compost production techniques, helping farmers reduce dependency on chemical fertilizers while improving soil health.
Also Read: Musim Mas Group Achieves Higher PROPER Green and Blue Ratings in Palm Oil Sector
With the partnership now extended, the program aims to reach an additional 500 independent smallholders and train 20 more PPLs through advanced modules. The renewed commitment reflects a shared long-term vision among the partners, emphasizing the importance of consistent, on-the-ground involvement to create lasting positive change in palm oil-producing regions.
While deforestation remains a key concern, the partnership also addresses the realities faced by rural communities. The continuation of this collaboration includes expanded efforts in capacity building, gender empowerment, youth engagement, and financial literacy to ensure sustainable livelihoods for farming families.
Musim Mas plans to introduce targeted programs for women farmers, promote youth participation, and deepen financial literacy and agribusiness training. These initiatives recognize that greater female participation often leads to better community outcomes. Training will cover essential areas such as nutrition and business management, while also involving men to support gender-inclusive development.
Most independent smallholders today belong to older generations. Engaging youth—including the children of farmers—is essential to securing the long-term sustainability of palm oil farming. The program introduces young people to modern agricultural techniques, sustainable farming aligned with NDPE principles, and the use of new technologies. To support this, Musim Mas aims to create dedicated platforms where youth can learn, share knowledge, and hone their skills with sustainability at the core.
As oil palm trees age, replanting becomes critical—making financial planning increasingly important. The program will include more in-depth financial literacy training, enabling farmers to make informed decisions and enhance their economic resilience.
“With the extension of our partnership with Nestlé and AAK, we want to reaffirm the company’s commitment to continuing to implement sustainable practices in the palm oil industry. As members of the RSPO (Roundtable on Sustainable Palm Oil) and POCG (Palm Oil Collaboration Group), we believe that cooperation with many parties can drive positive change, both for producers and consumers. Together, we are working to address various environmental, social, and economic challenges while building a more sustainable future for the palm oil industry in Aceh, which is one of Musim Mas’ priority regions,” said Olivier Tichit, Communications and Sustainability Director of Musim Mas, in a statement received by Palmoilmagazine.com on Monday, July 28, 2025.
Caroline Westerik-Sikking, Sustainability Director at AAK, added: “Renewing this collaboration with Nestlé and Musim Mas marks a crucial step toward long-term sustainability. We remain committed to helping smallholders improve their technical and farming skills so they can operate more sustainably. At the same time, we recognize that new regulations—such as the EU Deforestation Regulation (EUDR)—present significant hurdles for smallholders, who often lack the resources and capacity to comply. That’s why we’re committed to continued collective engagement to ensure inclusive pathways for smallholders in our supply chain.” (P3)
