PALMOILMAGAZINE, JAKARTA – The Palm Oil Smallholders Union (SPKS) and Nissin Foods Holdings, Japan, have been collaborating since 2018 to conduct a gap analysis for smallholder smallholders within the sustainable palm oil supply chain in Indonesia. The findings of this sustainability gap analysis have laid the groundwork for the official launch of this partnership on December 10, 2024, in Jakarta.
The collaboration begins with the establishment of a pilot project aimed at integrating smallholder smallholders into Japan’s industrial supply chain through the RSPO (Roundtable on Sustainable Palm Oil) certification approach. This initiative reflects Nissin Foods Holdings’ commitment to procuring sustainable palm oil for their operations in Japan.
In Indonesia, the program is implemented in partnership with SPKS, an organization instrumental in promoting sustainable palm oil management among smallholders.
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Kei Saito, General Manager of Corporate Planning Division at Nissin Foods Holdings, emphasized the company’s dedication to building a traceable and sustainable palm oil supply chain while enhancing smallholder farmers’ capacity and practices.
“Nissin Foods Holdings is committed to sustainable palm oil procurement, particularly by integrating smallholders into our supply chain,” said Kei Saito in a statement to Palmoilmagazine.com.
“Over the years, we have partnered with SPKS to facilitate dialogue with smallholders in Indonesia. We are thrilled to launch this initiative with strong support from SPKS and the Sugih Waras Village community, which will play a key role in the RSPO certification process. Our goal is to use this project as a stepping stone to further promote sustainable farming practices and improve the livelihoods of smallholder smallholders in Indonesia.”
Sabarudin, National Chairman of SPKS, expressed appreciation for Nissin Foods Holdings’ initiative to invest in smallholder smallholders by building a sustainable supply chain for the Japanese market.
“We hope the company’s supply chain in Japan will be 100% sourced from traceable, deforestation-free, and sustainable smallholder palm oil farmers,” stated Sabarudin. He further proposed that SPKS could serve as an independent verifier to ensure the traceability of sustainable supply chains for the Japanese market. Additionally, he called for fair partnerships that enable smallholders to receive equitable pricing.
Hiroshi Ishida, Executive Director of Caux Round Table Japan (CRT Japan), acknowledged the program’s significance in bridging collaboration between companies and smallholders .
“Through this program, we are grateful to contribute to building trust between companies and smallholder palm oil smallholders in Indonesia, in collaboration with SPKS. These efforts aim to create a better society,” said Hiroshi Ishida.
Asrianto, Secretary of Sugih Waras Village, expressed the village’s optimism regarding the partnership. Sugih Waras, home to 300 households with 500 hectares of independent oil palm plantations, sees this program as an opportunity to improve palm oil governance at the village level.
“Palm oil smallholders need support to enhance their capacity, establish institutions, and gain knowledge about sustainable practices, including certification. We hope this collaboration will improve the welfare of smallholders and encourage fair partnerships between palm oil companies and local communities,” said Asrianto. (P3)
