The expanded SMILE programme raises its original target by 40%, combining plantation-level technical assistance, RSPO certification support and credit purchases by Kao to strengthen independent smallholders’ livelihoods in Indonesia.
PALMOILMAGAZINE, JAKARTA – Asian Agri and Apical, in partnership with global consumer goods company Kao, have increased their target under the Smallholder Inclusion for better Livelihood and Empowerment (SMILE) programme to certify 7,000 independent oil palm smallholders under the Roundtable on Sustainable Palm Oil (RSPO) by 2030.
Amid the complexity of the palm oil supply chain, which involves producers, intermediaries and processors, SMILE aims to connect independent smallholders with global markets through certified sustainable production. The programme combines technical assistance to improve farming practices with market access and purchasing support for independent smallholder credits, according to information obtained by PalmOilMagazine on Monday, November 9, 2026.
Under the partnership, Asian Agri provides direct support to farmers through training in good agricultural practices and assistance in preparing for certification. Apical strengthens the initiative through its role in managing the midstream and downstream palm oil supply chain. Meanwhile, Kao provides market-based incentives for certified production while supporting smallholder development at the plantation level.
The revised target represents a 40% increase from the programme’s original commitment to reach 5,000 independent smallholders, reflecting the progress achieved since its launch in 2020.
In 2025, the number of certified participating smallholders more than doubled, with an additional 1,461 farmers obtaining RSPO certification during the year. By the end of 2025, the programme had supported a total of 2,834 certified independent smallholders, managing 6,574 hectares of plantations across North Sumatra, Riau and Jambi.
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The expanded target reflects the partners’ continued commitment to addressing the challenges independent smallholders face in meeting sustainability standards. Unlike farmers participating in established partnership schemes, independent smallholders often have limited access to structured technical assistance, financing and certification support.
Through SMILE, these gaps are addressed by providing practical guidance to improve cultivation practices, meet certification requirements and create opportunities for farmers to earn premiums from certified production.
“Independent smallholders often lack access to structured technical assistance, financing and certification support of the kind available through established smallholder partnership schemes. Through SMILE, we bring together partners with complementary expertise and capabilities to help address these gaps while creating opportunities for farmers to earn premiums. The progress achieved since 2020 provides a strong foundation for expanding this support and reaching more independent smallholders,” said Tor Mooi See, Head of Sustainability at Apical Group.
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At the plantation level, Asian Agri works directly with independent smallholders through cooperatives, providing training in good agricultural practices, assistance with record-keeping and documentation, and preparation for certification audits.
This ongoing engagement helps farmers address operational challenges, improve plantation management and strengthen their capacity to maintain certification over the long term.
Complementing this field-level assistance, Kao provides market-based incentives to support certification. Recognizing the important role of independent smallholders in Indonesia’s palm oil industry, Kao purchases RSPO Independent Smallholder Credits generated by SMILE participants who have achieved certification.
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Through this credit-trading mechanism, independent smallholders can obtain additional economic benefits from their certified palm oil production.
In addition, 1,162 independent smallholders participating in SMILE have received Adjuvant, a plant oil-based spray adjuvant developed by Kao, together with technical guidance on its application.
The product helps spray solutions adhere more effectively to plant surfaces, potentially reducing pesticide use while improving spraying efficiency. Kao believes this support can help improve smallholder productivity, encourage participation in certification programmes and reduce pressure to open new forest areas, contributing to the broader promotion of sustainable palm oil.
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“Farmers who adopt sustainable cultivation practices deserve to be rewarded for their efforts. Through SMILE, our credit purchases translate certification into tangible value for independent smallholders, regardless of their position in the supply chain,” said Koji Sato, Strategic Sourcing – Raw Materials, Global Procurement, Kao Corporation.
The credit mechanism does more than provide financial incentives for certification. It also helps build trust among independent smallholders through direct engagement and practical support at the plantation level.
Asian Agri has established this foundation of trust through its long-standing partnerships with plasma smallholders. Continuous technical assistance and close working relationships have helped improve plantation productivity and farmer livelihoods, providing a basis for extending similar support to independent smallholders.
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“Farmers have always been an important part of Asian Agri’s business. Our experience shows that sustainable change depends on whether farmers see tangible benefits from adopting better plantation management practices. Through our partnerships with plasma smallholders, we have helped improve livelihoods and lift farming families out of poverty. These tangible results have also helped build independent smallholders’ trust in Asian Agri and the benefits of our partnership model. Through SMILE, we support independent smallholders in improving plantation management while preparing them for certification,” said Ivan Novrizaldie, Head of Sustainability at Asian Agri.
This approach gives independent smallholders access to support traditionally available to plasma farmers without compromising their independence in managing their own plantations.
Irham Siregar, a SMILE participant from the Saroha Teluk Panji Farmers Association, shared how the programme has changed the way he manages his plantation.
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“In the past, as independent smallholders, we often saw the support received by plasma farmers and wondered where we could find similar assistance. Through SMILE, we now have people we can contact whenever we encounter problems on our plantations. We still make our own decisions, but we no longer have to find solutions to every challenge on our own. I never imagined that we could obtain certification and that our plantation products could gain recognition beyond local markets,” Irham said.
SMILE training also covers zero-burning land preparation and responsible land management practices.
As the programme moves towards its expanded 2030 target, the partners will continue helping independent smallholders adopt better plantation practices, strengthen business resilience and capture greater economic value from certified sustainable palm oil production.
The initiative highlights the importance of collaboration between producers, processors and global consumer goods companies in making sustainability more accessible to independent smallholders while strengthening their position in the international palm oil supply chain. (P3)
