PALMOILMAGAZINE, ACEH TAMIANG – M. Windrawan Inantha, Deputy Director of Market Transformation (Indonesia) at the Roundtable on Sustainable Palm Oil (RSPO), recently highlighted the significant potential to incorporate RSPO-certified independent smallholders into the physical supply chain through partnerships with committed members like PT Mora Niaga Jaya.
During a recent visit to Aceh Tamiang with Nassat Idris, Director of Yayasan Inisiatif Dagang Hijau (IDH) Indonesia, Windrawan stated that their primary mission was to explore ways to connect certified independent smallholders with a reliable and sustainable supply chain.
“On this visit, we had the opportunity to engage with various independent smallholders, the team from Pusat Unggulan Perkebunan Lestari (PUPL) Aceh Tamiang, and PT Mora Niaga Jaya, all of whom are committed to sustainability. Bridging smallholders with sustainable supply chains is not only promising but also essential,” Windrawan noted, as reported by Palmoilmagazine.com on Monday, October 21, 2024.
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Key challenges to integrating these smallholders include logistics, financing, and technical support. While larger palm oil companies have developed traceability mechanisms, independent smallholders often struggle to connect with them due to a lack of formal agreements, making their production difficult to track. This disconnect poses a barrier to meeting international standards and fully achieving sustainability in the palm oil industry.
Windrawan also said that it would be the strategic thing to connect the independent smallholders with the traceability system in the companies. It could escalate supply chain transparency and sustainability. By having partnership, capacity development, and taking advantages on technology, the companies would confirm that smallholders’ palm oil production would qualify sustainability standards in the form of certified sustainable palm oil (CSPO).
“This would be the big chance to create mutual profits for many parties. The independent smallholders would get the wider market access, while the companies would confirm more transparent supply chain and get the sustainable standards,” he said.
Windrawan did appreciate IDH Indonesia, the independent smallholders, PUPL Aceh Tamiang, and PT Mora Niaga Jaya for their commitment on developing more sustainable future. He would be optimist the collaboration would open inclusivity and sustainability in every palm oil supply chain.
“The collaboration would be not only about to increase palm oil sustainability but also develop inclusive partnership and deliver the advantages for every party involved,” he said. (P2)
