InfoSAWIT, SANGATTA — A significant milestone in the history of smallholder palm oil was achieved in Sangatta, East Kutai. Over two days, from July 14-15, 2025, 19 cooperatives of smallholder palm oil farmers from various regions in East Kalimantan declared the establishment of the Sustainable Palm Oil Farmers Association of Kalimantan (APSBK). Held at the Grand Victoria Hotel, the farmers gathered to discuss and express their collective determination to shape their future amid an increasingly competitive global market that demands legality and sustainability.
This declaration is more than just a ceremony. It embodies the spirit of unity from nine cooperatives that have obtained ISPO and RSPO certifications, supported by eleven other cooperatives that are in the process of achieving sustainability standards. Together, they represent the voices of over 4,600 smallholder farmers and certified fresh fruit bunch (FFB) production reaching 223,860 tons per year.
“We are committed to upholding the principles of sustainability, building solidarity across regions, and becoming strategic partners for the government, companies, and civil society,” emphasized Jamaluddin, Chairman of APSBK, in an official statement to InfoSAWIT on Wednesday (July 16, 2025).
In his statement, Jamaluddin noted that palm oil has become a driver of the people's economy. However, amidst the onslaught of regulations such as ISPO, RSPO, NDPE, and EUDR from the European Union, smallholder farmers often find themselves left behind. Therefore, he continued, the formation of APSBK is a strategic step to build collective strength capable of voicing concerns in policy arenas and sustainable supply chains.
The declaration was also marked by the signing of a Memorandum of Understanding (MoU) between four smallholder cooperatives and several companies. This MoU signals the beginning of long-term partnerships based on market certainty and fairness principles—an essential foundation for building relationships between small producers and industry players.
Real support for the establishment of APSBK came from the East Kutai Regent, Ardiansyah Sulaiman, who was present and delivered an enthusiastic speech. He welcomed the farmers' initiative and referred to the association as a new force expected to drive grassroots welfare.
“This association must be the main driver in ensuring smallholder farmers achieve prosperity. I am pleased that this association has a mission that is synergistic with the government,” he stated.
However, Ardiansyah also reminded the importance of land legality as a crucial issue. He highlighted the increasing scrutiny from the central government on smallholder plantations, especially those located in areas lacking clear spatial planning.
“I am concerned about the smallholder farms in these areas. I remind the Plantation Office to be diligent in the field and actively coordinate. East Kutai aims to become a center for palm oil downstreaming,” he asserted.
Before the declaration, representatives from the 19 cooperatives held a discussion forum addressing the real challenges faced by smallholder palm oil farmers, including limited access to funding, land legality issues, minimal farmer involvement in policy decision-making processes, and the need for fair market access. This forum laid the groundwork for the prioritization of APSBK's future programs. (T2)
