PALMOILMAGAZINE, JAKARTA – PT Perkebunan Nusantara IV PalmCo, a subholding of PTPN III (Persero), absorbed a total of 3.25 million tons of fresh fruit bunches (FFB) from smallholder oil palm farmers throughout 2025. The volume was sourced from both plasma and independent farmers partnered with the company across PalmCo’s various operational regions.
PalmCo President Director Jatmiko said the smallholder supply accounted for a significant share of the company’s total processed raw material. “Last year, out of the 12.26 million tons of FFB processed by the company, 3.25 million tons came from smallholders, both plasma and independent farmers,” he said, as quoted by Palmoilmagazine.com from Antara on Wednesday (February 4, 2026).
The figure represents an increase of around 16 percent compared with 2024. According to Jatmiko, the absorbed volumes were supplied through hundreds of partnerships with village unit cooperatives (KUD) and smallholder institutions across PalmCo’s seven operational regions, involving tens of thousands of farmers in Sumatra, Java, Kalimantan, and Sulawesi.
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He emphasized that increased absorption of smallholder FFB is not solely linked to industrial raw material needs, but also has a direct impact on farmers’ economic stability. “The ability of companies and the industry to absorb harvests is directly correlated with prices, farmers’ incomes, and overall welfare,” Jatmiko noted.
From a productivity standpoint, the performance of partner smallholder plantations has shown a positive trend. Over the past five years, PalmCo has supported tens of thousands of farmers whose average FFB productivity has exceeded the national standard. Productivity growth among plasma farmers has even reached 19–20 percent.
Jatmiko underscored the strategic role of smallholders in maintaining the sustainability of Indonesia’s palm oil supply, given that they control more than 30 percent of the country’s total oil palm plantation area. “Smallholders are the backbone of national palm oil production. That is why certainty of offtake and healthy partnerships are crucial,” he said.
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Beyond FFB absorption, PalmCo has also strengthened support for smallholder plantations through the Smallholder Oil Palm Replanting Program (PSR). Throughout 2025, the realization of PSR technical recommendations facilitated by the company reached 23,188 hectares. Through this program, PalmCo acts as a partner to farmers, providing technical assistance and ensuring that replanted estates return to productivity and remain integrated into the industrial supply chain. (P2)
