PALMOILMAGAZINE, JAKARTA – Growing global demands for traceability and sustainability in the palm oil trade are driving stronger support for independent smallholders, as producers face increasing pressure to comply with international market requirements.
Guntur Cahyo Prabowo, Head of Smallholder Global at RSPO, said global buyers—particularly in Europe—are increasingly requiring traceability systems that can verify palm oil products originate from legal and responsibly managed sources.
“Markets want to know which farmer produced the fresh fruit bunches and exactly where they came from. This has become standard practice in international trade, while Indonesia is still working through several challenges in implementing such systems,” Guntur said during an RSPO Media Brunch attended by Palmoilmagazine.com on Friday (June 12, 2026).
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To help independent smallholders meet these expectations, RSPO has developed a dedicated certification standard tailored to smallholder conditions. The organization works closely with local governments, universities, private sector partners, and other stakeholders to provide technical assistance and capacity-building programs.
The support includes training on sustainable agricultural practices, strengthening farmer organizations, and helping producers meet certification requirements.
According to RSPO data, the organization has distributed approximately US$5.5 million in global support funding since 2013, with around US$1.94 million allocated to Indonesia.
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Between 2018 and 2026, about 89,650 hectares of oil palm plantations were certified under RSPO standards, involving at least 41,134 independent smallholders across the country.
In addition, approximately IDR 416 billion has been distributed to farmer groups through various sustainability incentive schemes, helping producers strengthen operations and improve compliance with sustainability standards.
“The most important aspect is not the assistance itself, but the long-term impact it creates in improving farmers’ livelihoods and their ability to implement sustainable practices,” Guntur explained.
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He emphasized that land legality remains the cornerstone of the certification process. Once legal requirements are fulfilled, continued mentoring and support are essential to ensure farmers can maintain compliance and sustain improvements over the long term.
As global regulations continue to tighten, particularly regarding supply chain transparency and environmental accountability, strengthening smallholder capacity is becoming increasingly important to ensure Indonesian palm oil remains competitive in international markets. (P3)
