PALMOILMAGAZINE, LABUHANBATU – Efforts to improve the welfare of smallholder palm oil farmers continue to gain momentum. PT Perkebunan Milano, a subsidiary of the Wilmar Group, has officially signed a Memorandum of Understanding (MoU) for the Partnership Plantation Program with the Seira Mandiri Jaya Producers Cooperative in Sei Rakyat Village, Labuhanbatu Regency, North Sumatra.
This program reflects Wilmar’s ongoing commitment to supporting the development of sustainable plasma plantations while strengthening the local economy around its operational areas. Through the partnership, PT Perkebunan Milano will provide technical guidance, access to financing, and guaranteed market channels for cooperative members’ harvests.
Chairman of the Seira Mandiri Jaya Producers Cooperative, Edi Saputra, expressed appreciation for the collaboration, hoping it would help boost the productivity of smallholders’ fresh fruit bunches (FFB), which currently average around 700 kilograms per hectare per year. He attributed the low yields to the use of non-certified seeds and substandard fertilization practices.
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“So far, we’ve been managing our palm farms based on experience alone. With technical assistance from the company, we hope to increase yields and meet the standards applied by the company,” said Edi during the signing ceremony on Sunday (September 29).
In its initial phase, the partnership program will cover 71 hectares, with plans to expand to 115 hectares, involving 38 cooperative farmers. “We’re optimistic that with the company’s guidance and support, farmers’ livelihoods will improve,” Edi added.
Head of the Labuhanbatu Agriculture Office, Agussalim Ritonga, praised Wilmar’s initiative for fulfilling its obligation to develop plasma plantations in line with government regulations. He emphasized that such initiatives not only empower farmers but also have a positive impact on the regional economy.
“We truly appreciate the company’s commitment. This program will bring tangible benefits to farmers while stimulating local economic growth,” Agussalim said in an official statement received by Palmoilmagazine.com on Tuesday (October 7, 2025).
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Meanwhile, Yudha Adri, Wilmar’s Head of Social Security and Licensing, reaffirmed that the partnership is part of the company’s broader effort to build harmonious and mutually beneficial relations with local communities.
“Communities are an essential part of our operations. Wilmar is committed to continuing and expanding programs that deliver direct and lasting benefits to the people around us,” he said.
Through this initiative, the synergy between Wilmar and local farmers is expected to not only improve palm oil productivity but also strengthen the foundation of sustainable economic growth in Labuhanbatu. (P2)
