PALMOILMAGAZINE, JAKARTA — Asian Agri has reaffirmed its commitment to sustainable palm oil development through the Certified Palm Oil Premium Sharing Programme 2024, channeling approximately IDR 5.5 billion in certification premiums to partner smallholders in Riau and Jambi.
The farmer and cooperative appreciation event was held in Bukittinggi, West Sumatra, in late December 2025. The program reached 76 Village Unit Cooperatives (KUD) and delivered direct benefits to more than 30,000 plasma and partnership smallholder farmers.
Asian Agri Head of Partnership Rudy Rismanto said that Roundtable on Sustainable Palm Oil (RSPO) certification plays a critical role in expanding global market access for smallholder-produced palm oil.
“Through RSPO certification, palm oil produced by our partner farmers can be accepted in international markets, including Europe, which requires sustainably sourced products,” Rudy said, as quoted by Palmoilmagazine.com from Media OutReach Newswire on Thursday (1/1/2026). “The premiums received are reinvested to improve productivity, upgrade infrastructure, strengthen cooperative facilities, and support alternative income sources for farmers.”
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He emphasized that Asian Agri’s sustainability approach goes beyond environmental considerations, incorporating social and economic impact. “We want sustainable practices to translate into real improvements in farmers’ livelihoods. This is our philosophy: sustainability and prosperity must grow together,” he said.
The program’s impact is already being felt at the cooperative level. Subiyono, Chairman of KUD Karya Bersama, said the premium funds have strengthened both cooperative operations and farmer capacity. “In 2026, we plan to allocate part of the funds to repair and maintain plantation roads, which are the main access routes for transporting fresh fruit bunches to the mill,” he explained.
KUD Karya Bersama is also implementing a replanting program in collaboration with Asian Agri. Replanted palms, now 49 months old, have reached an average productivity level of two tons per hectare per month.
Also Read: Asian Agri and Apical Strengthen Commitment to Sustainable Palm Oil: From Household Use to Avtur
Meanwhile, Waluyo, Chairman of KUD Makmur Rezeki, said the premiums have been used to reinforce institutions and promote environmentally friendly practices. “They have supported fertilizer warehouse improvements, plantation road upgrades, the provision of personal protective equipment, and even the installation of owl houses as a natural pest control solution,” he said.
Through this program, Asian Agri—part of Royal Golden Eagle—underscored its long-term investment in strengthening farmers and cooperatives, ensuring that sustainable palm oil development delivers lasting social, economic, and environmental benefits. (P2)
