PALMOILMAGAZINE, JAKARTA – Sustainability certification is increasingly being recognized as a strategic tool for enhancing the competitiveness of Indonesia’s independent palm oil smallholders. Beyond serving as a compliance mechanism, certification is opening doors to broader market opportunities, economic incentives, stronger farmer institutions, and improved sustainable farming practices.
During an RSPO Media Brunch held on Friday (June 12, 2026), stakeholders from across the palm oil value chain underscored the importance of strengthening the position of independent smallholders as global markets continue to raise expectations for traceability and sustainability.
Guntur Cahyo Prabowo, Head of Global Smallholders at RSPO, emphasized that certification should not be viewed merely as an audit process or administrative requirement. Instead, he described it as a strategic effort to build strong farmer organizations capable of consistently meeting sustainability standards.
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“Certification requires an organized entity that can ensure compliance with sustainability requirements. Equally important is building trust among farmers so they are willing to work collectively within structured organizations,” said Guntur at the RSPO Media Brunch, which was attended by Palmoilmagazine.com, on Friday (June 12, 2026).
According to him, Indonesia is home to approximately 2.6 million oil palm smallholders, most of whom continue to operate independently without formal institutional structures. This often limits their access to certification programs, financing opportunities, and premium markets.
He added that the lengthy fresh fruit bunch (FFB) supply chain, which frequently involves multiple intermediaries before reaching palm oil mills, remains another significant challenge. Strengthening farmer groups, he noted, could improve bargaining power and create more efficient market channels.
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“When farmers organize themselves into groups, they gain stronger bargaining positions and may even access markets more directly,” he explained.
Global Regulations Drive Demand for Traceability
The growing number of international regulations is further accelerating the need for sustainability certification. Global buyers, particularly in Europe, increasingly require traceability systems that can verify palm oil products originate from legal and responsibly managed sources.
“Markets want to know exactly who produced the palm fruit and where it came from. This level of traceability has become standard practice in international trade, while Indonesia is still facing several implementation challenges,” Guntur said.
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To support independent smallholders in meeting these requirements, RSPO has developed dedicated standards tailored to local realities. Through collaboration with local governments, universities, private-sector partners, and other stakeholders, RSPO provides assistance covering sustainable agricultural practices, organizational strengthening, and certification compliance.
RSPO data show that since 2013, the organization has distributed approximately US$5.5 million in global support funding, with around US$1.94 million allocated to Indonesia. Between 2018 and 2026, approximately 89,650 hectares of oil palm plantations were certified under RSPO standards, involving more than 41,000 independent smallholders. In addition, roughly Rp416 billion has been distributed to farmer groups through various sustainability incentive schemes.
“The most important aspect is not the assistance itself, but the long-term impact on farmers’ livelihoods and their ability to consistently implement sustainable practices,” Guntur stressed.
He added that land legality remains the foundation of the certification process. Once legal requirements are fulfilled, continuous mentoring and capacity-building efforts become essential to maintaining certification standards over the long term.
FORTASBI Strengthens Its Role as a Learning Hub for Farmers
At the same event, Rukaiyah Rafik, Member of the RSPO Board of Governors and Head of the Secretariat of the Indonesian Sustainable Palm Oil Farmers Forum (FORTASBI), highlighted the organization’s growing role as a platform for learning and collaboration among certified independent smallholders.
Currently, around 22,000 farmers are part of the FORTASBI network, representing a significant share of Indonesia’s approximately 40,000 RSPO-certified independent smallholders.
“FORTASBI was established to accommodate certified farmers. It serves as a home where farmers can learn, exchange experiences, and support other farmers in adopting sustainable practices,” Rukaiyah said.
She emphasized that the benefits of certification should extend beyond market access. Sustainability premiums and incentives can also be used to support community development programs and environmental restoration initiatives in plantation areas.
Rukaiyah encouraged certified cooperatives and farmer groups to expand their membership and become centers of excellence for farmers pursuing certification.
“Many farmers have now become trainers themselves, guiding others through the certification journey. We also have field facilitators working directly with farmers to ensure sustainability practices are effectively implemented on the ground,” she explained.
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KUD Tani Subur’s Certification Journey
The transformative impact of certification can be seen in the experience of KUD Tani Subur, a smallholder cooperative in Central Kalimantan. According to its Chairman, Sutiyana, the biggest challenge during the early stages was convincing farmers about the value of certification.
“At that time, RSPO certification felt like a dream. It was extremely difficult to explain the benefits to farmers, especially without adequate support and mentoring,” he recalled.
Starting with around 300 members, the cooperative has since expanded to approximately 1,400 independent smallholders as more farmers began experiencing the tangible benefits of certification.
For Sutiyana, the greatest advantage goes beyond market opportunities. Certification has strengthened awareness of land legality, governance, and responsible plantation management.
“For us, the biggest benefit has been legal certainty. When farmers have clear documentation, they are in a much stronger position,” he said.
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Despite the progress, challenges remain, particularly in meeting administrative requirements for accessing financing and expanding cooperative businesses. One of the cooperative’s long-term ambitions is to establish a farmer-owned palm oil mill.
“We dream of having our own mill so that more value can be retained by farmers. However, there are still many requirements to fulfill, and regulations often change during the process,” he explained.
Despite these obstacles, Sutiyana remains optimistic about the future of Indonesia’s independent palm oil smallholders.
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“We want to prove that Indonesian farmers can continue to grow and thrive. RSPO certification has delivered tremendous benefits for us, and we hope more farmers will understand its importance,” he said.
Through stronger farmer institutions, expanded capacity-building programs, and broader access to sustainability certification, RSPO aims to help more Indonesian independent smallholders improve their competitiveness while playing a vital role in creating a more inclusive, transparent, and sustainable palm oil industry. (P3)
