RSPO Pushes Independent Smallholders to ‘Upgrade’ by Connecting to Sustainable Palm Physical Supply Chain

Palm Oil Magazine
M. Windrawan Inantha, Deputy Director Market Transformation RSPO Indonesia, encouraged certified smallholders to ‘upgrade’ by joining physically sustainable palm oil supply chains, rather than relying on credit sales. Photo by: RSPO for Palmoilmagazine.com

PALMOILMAGAZINE, JAKARTA – Trisakti University, in collaboration with the Roundtable on Sustainable Palm Oil (RSPO) and the Palm Oil Farmers Union (SPKS), held a Thought Leadership Forum themed “Bridging Policy and Practice: Harmonizing Local Regulations with Global Sustainability Standards.” The event served as a platform for multi-stakeholder dialogue on aligning local palm oil policies with international sustainability benchmarks.

In his opening remarks, the Rector of Trisakti University, Prof. Dr. Ir. Kadarsah Suryadi, DEA,  emphasized the university’s role as a One Stop Learning for Sustainable Development. “We are committed to positioning Trisakti as a driving force for sustainable development through education, research, and cross-sector collaboration,” he said, as quoted from a statement received by Palmoilmagazine.com on Tuesday (May 27).

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The event was also supported by GIZ and Oxfam and featured speakers from government institutions, farmer organizations, private companies, and international bodies. Notable participants included the Regent of Sekadau, representatives from the Ministry of Home Affairs, BAPPENAS, PT SMART Tbk, SPKS, BPDPKS, GIZ, and RSPO.

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Through this forum, Trisakti University reinforced its role as a cross-sectoral platform to accelerate a more inclusive, equitable, and globally competitive transformation of Indonesia’s palm oil industry.

The forum aimed to generate actionable strategic recommendations, including stronger multi-stakeholder synergy, innovative financing schemes, and the integration of regenerative agriculture principles into local development planning.

A key topic of discussion was the need to align local policy instruments, such as the Regional Action Plan (RAD) for Sustainable Palm Oil, with global standards like the RSPO. The Rector expressed appreciation for Sekadau Regency, which has implemented its RAD since 2022 as a follow-up to the National Action Plan for Sustainable Palm Oil (RAN KSB).

Sekadau Regent Aron shared his region’s experience in advancing sustainable palm oil policies. He highlighted that the 2022 RAD KSB was a clear demonstration of Sekadau’s commitment to responsible palm oil practices. However, he also noted challenges on the ground—particularly the lack of price differentiation for RSPO-certified independent smallholders. “Our farmers strive to meet sustainability standards, but the prices they receive are no different from those without certification,” he said, warning that this may weaken farmers’ motivation without sufficient incentives.

Meanwhile, Deputy Director Market Transformation RSPO Indonesia, M. Windrawan Inantha, emphasized, “We need real cross-actor collaboration. Challenges such as deforestation, smallholder access to markets and finance, and supply chain transparency can only be addressed through coordinated efforts between local governments, the private sector, farmer organizations, and local communities.”

Responding to the issue of smallholder certification raised by Regent Aron, Windrawan explained that RSPO has developed specific standards for sustainable palm oil production by independent smallholders. “The RSPO certification system allows smallholders to earn incentives through the book and claim credit scheme,” he noted.

Windrawan further emphasized the need to integrate certified smallholders into the physically sustainable supply chain. “Smallholders must ‘level up’—not just rely on selling RSPO credits, but actively participate in the physical palm oil supply chain,” he stated. One recommended approach is linking RSPO-certified smallholders with nearby RSPO-certified palm oil mills. “When smallholder FFB is accepted by RSPO-certified mills, it opens access to broader markets and strengthens farmers’ bargaining power in the sustainable palm oil industry,” he concluded. (P3)

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