PALMOILMAGAZINE, SANGATTA — A new milestone for Indonesia’s independent palm oil farmers was etched in Sangatta, East Kutai. Over two full days, from July 14–15, 2025, 19 independent smallholder cooperatives from across East Kalimantan came together to officially declare the establishment of the Kalimantan Sustainable Palm Oil Farmers Association (APSBK). Held at the Grand Victoria Hotel, the event served as both a moment of unity and a strategic move to prepare smallholders for the increasingly demanding global market — where legality and sustainability are no longer optional.
This declaration was far more than symbolic. Backed by the solidarity of nine cooperatives already certified under ISPO and RSPO and eleven others currently in the certification process, the APSBK brings together the voices of over 4,600 independent farmers, representing an annual certified fresh fruit bunch (FFB) production of 223,860 tons.
“We are committed to upholding sustainability principles, fostering inter-regional solidarity, and becoming a strategic partner for government, corporations, and civil society,” said Jamaluddin, Chairman of APSBK, in an official statement to Palmoilmagazine.com on Wednesday, July 16, 2025.
Jamaluddin emphasized that palm oil has long been a key driver of local economic development. However, he acknowledged that in the face of tightening regulations — from ISPO, RSPO, NDPE, to the EU’s EUDR — independent smallholders often find themselves marginalized. The formation of APSBK, he said, is a strategic move to build collective strength capable of influencing policy and participating in sustainable supply chains.
The declaration was also marked by the signing of Memorandums of Understanding (MoUs) between four smallholder cooperatives and several companies, signaling the beginning of long-term partnerships based on market certainty and fairness — a crucial foundation for improving the relationship between small-scale producers and industry players.
The launch of APSBK received strong support from East Kutai Regent Ardiansyah Sulaiman, who delivered an impassioned speech praising the initiative. He called the association a new grassroots force with the potential to drive farmer welfare.
“This association must become the main driver to ensure that independent smallholders achieve prosperity. I’m proud that its mission aligns closely with the government’s,” he said.
However, Ardiansyah also underlined a critical issue: land legality. He noted growing scrutiny from the central government over smallholder plantations, particularly those operating in areas without clear land-use zoning.
“I’m deeply concerned about smallholder plantations operating in disputed areas. I urge the Plantation Office to be proactive in the field and to strengthen coordination. East Kutai aims to become a downstream palm oil hub,” he stressed.
Ahead of the declaration, representatives from the 19 cooperatives held a dialogue forum, addressing the pressing challenges facing independent palm oil farmers — from limited access to financing, land legality issues, and exclusion from policymaking, to the urgent need to open fair market access. These discussions laid the groundwork for APSBK’s priority programs in the years ahead. (P2)
