PALMOILMAGAZINE, JAKARTA – The Indonesian Oil Palm Smallholders Union (SPKS) believes that sustainable palm oil certification has become a strategic instrument for improving the productivity of independent oil palm farmers. However, the organization argues that expanding certification coverage will require stronger government investment, particularly through funding support from the Plantation Fund Management Agency (BPDP).
In an official statement received by Palmoilmagazine.com on Friday (June 26, 2026), SPKS emphasized that financing certification programs and farmer assistance should become a priority to enable more independent smallholders to meet both national and international sustainability standards.
The organization also called on palm oil companies to take a more active role in supporting certification costs. According to SPKS, smallholders have long served as key suppliers to the palm oil industry, making investments in farmer capacity building and certification a shared responsibility across the sustainable palm oil supply chain.
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The appeal was reinforced by a recent study conducted by the Center for Indonesian Policy Studies (CIPS), which found that improving smallholder productivity could make a significant contribution to Indonesia’s economy. Independent farmers currently manage approximately 41% of the country’s total oil palm plantation area, although their productivity remains below that of large-scale estates.
Various studies have shown that implementing good agricultural practices through certification schemes can increase plantation productivity by between 9% and 20%.
SPKS Chairman Sabarudin said the experiences of SPKS members demonstrate that certification can deliver tangible improvements in production performance.
Currently, 13 cooperatives representing approximately 3,076 SPKS members and covering 6,204 hectares have obtained either RSPO or ISPO certification. According to Sabarudin, productivity levels have improved after farmers completed the certification process.
“Certification improves farmers’ capacity to manage plantations more effectively through operational standards, stronger cooperative institutions, and the implementation of Good Agricultural Practices,” he said.
He explained that certification goes beyond administrative compliance. The process includes technical training, field assistance, organizational strengthening, and more efficient plantation management systems, all of which contribute to higher productivity and farmer incomes.
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Beyond productivity gains, RSPO certification has also generated economic benefits through the sale of sustainability credits. Revenue from these credits has been used by cooperatives to strengthen traceability systems, improve member capacity, support organizational operations, and finance sustainable investments at the farm level.
However, SPKS acknowledged that the sustainability credit market has slowed in recent years, leaving some farmer-generated credits unsold. The organization said this demonstrates the need for more consistent market incentives to ensure farmers continue to benefit economically from certification.
According to SPKS, the future implementation of ISPO certification should also include incentive mechanisms that provide direct benefits to smallholders. Since farmers must invest in meeting certification requirements, incentives should help offset those costs while improving farmer welfare.
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“Incentives are essential to making certification truly sustainable. Farmers have already invested in meeting the standards, so both the government and the market need to ensure there are tangible and long-term economic benefits,” Sabarudin said.
SPKS added that certification and technical assistance costs remain major barriers for many independent smallholders. Consequently, the organization urged the government to increase investment and allocate larger budgets to expand certification access.
One of the most strategic measures, according to SPKS, would be to prioritize ISPO certification funding through BPDP-managed funds. The organization noted that existing ISPO regulations already provide a legal basis for utilizing BPDP funds to support certification programs.
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In addition to increasing funding, SPKS also called for simpler application procedures to make certification programs more accessible to independent farmers.
The organization believes that accelerating certification through BPDP funding would not only strengthen the sustainability of Indonesia’s palm oil industry but also serve as an important strategy to improve smallholder productivity and support the national target of producing 100 million tons of palm oil by 2045 by maximizing the role of farmers within the country’s palm oil supply chain. (P2)
