PALMOILMAGAZINE, ACEH UTARA – The Indonesian Oil Palm Smallholders Union (SPKS), in collaboration with the Plantation Fund Management Agency (BPDP), is advancing downstream development for independent palm oil growers by equipping farmers and cooperatives in North Aceh with the skills to produce organic fertilizer from palm oil waste. The initiative aims to generate new income opportunities while strengthening cooperatives as engines of rural economic growth.
The program was implemented through a Workshop on Developing Palm-Based MSME Products and Hands-on Training in Organic Fertilizer Production, forming part of broader efforts to empower small and medium-sized enterprises (MSMEs) and plantation cooperatives.
SPKS Chairman Sabarudin said that many smallholders remain heavily dependent on selling Fresh Fruit Bunches (FFB), leaving their incomes vulnerable to fluctuations in palm oil prices. Developing value-added downstream products, he said, is essential to improving farmers’ long-term economic resilience.
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“Smallholders should not remain merely raw material suppliers. Downstream development must create value that is enjoyed directly by farmers. Producing organic fertilizer from palm oil waste not only supports plantation needs but also creates new business opportunities for farmer cooperatives and helps plantation MSMEs move up the value chain,” Sabarudin said in a statement received by Palmoilmagazine.com on Friday.
He noted that palm oil waste, which is often underutilized, has significant potential to be converted into commercially valuable organic fertilizer. Besides lowering fertilizer costs, the product can support more environmentally friendly and sustainable palm cultivation practices.
Meanwhile, Helmi Muhansyah, Head of BPDP’s Community Partnership and MSME Division, reaffirmed the agency’s commitment to strengthening the capacity of farmers, cooperatives, and plantation-based MSMEs through a range of strategic programs.
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According to Helmi, BPDP continues to support downstream palm oil development alongside flagship initiatives such as the Smallholder Palm Oil Replanting Program (PSR), infrastructure assistance, human resource development, and various farmer empowerment programs that have benefited communities across Indonesia.
SPKS North Aceh Chairman Abubakar AR explained that the workshop was designed to provide participants with both an understanding of downstream business opportunities and practical skills in producing organic fertilizer using palm oil waste.
Through hands-on field sessions, farmers and cooperative managers learned simple, cost-effective production techniques that could be developed into cooperative-owned business units. The approach also supports the implementation of a circular economy, transforming agricultural waste into value-added products.
SPKS believes organic fertilizer production offers multiple benefits. In addition to improving soil fertility and reducing reliance on chemical fertilizers, the business has the potential to create new revenue streams for cooperatives, enabling them to expand beyond marketing harvested crops into broader productive economic activities for their members.
North Aceh was selected as the venue because of its large base of independent oil palm smallholders and its strong experience in cooperative development. SPKS has long supported farmers in the region through organizational strengthening, cooperative business development, and the adoption of sustainable palm cultivation practices that contribute to RSPO certification.
The initiative is also expected to contribute to the region’s economic recovery following the 2025 Aceh floods. By promoting organic fertilizer production and other palm-based downstream products, the program aims to create new business opportunities and strengthen the economic resilience of smallholder households.
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The workshop attracted approximately 150 participants, including oil palm farmers, cooperative leaders, local government officials, plantation companies, academics, university students, and members of the media. SPKS hopes the initiative will lead to the establishment of cooperative-owned organic fertilizer enterprises that improve farmer livelihoods while supporting the sustainable development of Indonesia’s palm oil industry. (P2)
