InfoSAWIT, TOKYO – Apical, one advanced and developing vegetable oil industry in the world, and Asian Agri, one biggest palm oil producer in Indonesia, took participation in JaSPON x RSPO Conference and Members Engagement Forum in Japan on 11 - 12 October 2023.
Apical and Asian Agri were invited by Roundtable for Sustainable Palm Oil (RSPO) in the event with KAO Corporation, Japanese chemical and cosmetic company which is the partner in Smallholder Inclusion for Better Livelihood & Empowerment (SMILE) program which is the same initiative program in the three companies.
SMILE is a specific sustainable initiative which was designed to encourage independent smallholders in Indonesia to face many challenges. Besides, the program is about to promote sustainable practices in palm oil industries.
Head of Sustainability Asian Agri, Ivan Novrizaldie said that, independent smallholders are more vulnerable than plasma ones. Independent smallholders have no official agreement with companies or factories anywhere. They do not have access to financial institutions and technical assistant. Meanwhile of the total certified smallholders, only 20% of them are independent ones.
“That is why we are excited to share related information about inclusive program with the smallholders through SMILE. Asian Agri that has plasma smallholders and 50% contribution of total production, would be the strong position to develop security and sustainable practices in these industries,” he said, as in the official statement to InfoSAWIT, Tuesday (11/10/2023)
Apical, Asian Agri, and KAO worked hard together to confirm that SMILE Program would be successful. The initiative is about to empower smallholders to escalate their plantation yield, get certification in international level and eventually they could escalate their welfare with the premium price from plantation harvests that were certified.
Director of Sustainability Apical Group, Bremen Yong said, besides resource limits, independent smallholders are weak to get their bargaining position and are vulnerable to market fluctuation.
“As part of palm oil industrial supply chain, it is our same obligation to encourage and escalate the lives of smallholders. Apical has a long term – commitment for the smallholders. We also targeted to help five thousand independent smallholders in getting RSPO certificate in 2030. The success of SMILE Program would be acknowledged that collaboration would deliver success and make change,” Bremen said.
Chairman of Koperasi Tebing Tinggi Pangkatan Sejahtera (KTTPS) from Village of Tebing Tinggi, District of Labuhanbatu, North Sumatera, Khairul Anam said that he is honored to represent independent smallholders’ activity in the cooperation to share sustainable practices and certification progress to every stakeholder in Japan.
“Our members are very proud to get RSPO certificate which was one of our imagination. Since we took participation in SMILE Program, our plantation yield escalated up t0 60%. Everything we go is by implementing sustainable practices,” Anam said. (T2)
