PalmCo Enhances Oil Palm Smallholders Productivity Through Single Management Model

Palm Oil Magazine
Jatmiko Santosa, President Director of PalmCo. Photo by: Special

PALMOILMAGAZINE, JAKARTA – Sub Holding of Perkebunan Nusantara PTPN III (Persero), PTPN IV PalmCo, continues to demonstrate its commitment to increasing the productivity of its partnered oil palm smallholders. All the Village Cooperative Units (KUD) involved in PalmCo’s Palm Oil Replanting Program (PSR) have achieved an average productivity of 12.57 tons of fresh fruit bunches (TBS) per hectare per year in the first year. This figure surpasses the national standard set by the Palm Oil Research Center (PPKS) by 0.57 tons.

“Alhamdulillah, from over 10,000 hectares of PSR land managed by the company, the productivity of our partnered smallholders’ oil palm plantations consistently exceeds the national standard every year,” said Jatmiko Santosa, President Director of PTPN IV PalmCo, in a statement quoted by Palmoilmagazine.com on Thursday (27/3/2025).

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In addition to the average productivity exceeding the national standard, some KUDs have achieved even higher results. For example, KUD Makarti Jaya in Riau recorded a production of up to 18 tons of TBS per hectare per year, far above the national standard of only 12 tons.

Also Read: Indonesia Reclaims 1 Million Hectares of Palm Oil Plantations from 369 Companies

Jatmiko emphasized that this achievement is the result of implementing the single management model, which focuses on equality between the company, the plasma smallholders, and their institutions.

“With this model, the entire management process is carried out by the company with the best standards, including the use of certified seeds, technical guidance, cultivation assistance, and other aspects that add value to the smallholders,” he explained.

In addition to improving productivity, PalmCo also provides added value to plasma smallholders in the single management system. One of the key initiatives is the implementation of digitization through geospatial mapping, which enables more effective monitoring of plantations.

Furthermore, the company encourages smallholders to obtain Roundtable on Sustainable Palm Oil (RSPO) certification, which enhances the competitiveness of their products in the global market and provides added value in the form of premium fees for smallholders who adopt sustainable farming practices.

“This certification not only improves the competitiveness of smallholders’ products in the global market but also provides added value in the form of premium fees for those who implement practices that consider the environment,” concluded Jatmiko. (P2)

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