InfoSAWIT, SANGATTA — Amid global scrutiny of sustainable and deforestation-free plantation practices, smallholder palm oil farmers in East Kutai, East Kalimantan, have made significant strides. A total of 614 farmers from 13 cooperatives have officially received their Cultivation Registration Certificate (STDB), covering a total area of 1,434 hectares. The STDB handover took place during an official ceremony at the Royal Victoria Hotel, Sangatta, last Tuesday, marking an important milestone in strengthening the governance of legal, productive, and environmentally friendly smallholder palm oil.
More than just an administrative document, the STDB serves as a gateway for farmers to access standardized and sustainable plantation business systems. The handover event was also marked by the signing of a memorandum of understanding between the palm oil cooperatives and the Department of Agriculture, the Department of Cooperatives and SMEs, and partner companies. This collaboration reflects a multi-stakeholder commitment to building a fair, inclusive, and globally competitive smallholder palm oil sector.
East Kutai Regent Ardiansyah Sulaiman, who attended the event, emphasized that this initiative is a tangible manifestation of the local government's seriousness in strengthening farmers' positions within the national palm oil supply chain. “I am proud because this partnership is not just a business matter, but also aims to empower farmers to become independent and meet global standards such as ISPO and RSPO,” Ardiansyah stated, as quoted by InfoSAWIT from the East Kutai Government on Thursday (July 17, 2025).
According to him, legal status through the STDB is a fundamental requirement for accessing various funding programs, such as People's Business Credit (KUR), as well as opportunities for sustainability certification that opens access to premium markets. “ISPO and RSPO are not just symbols. With this certification, farmers can obtain better prices, market certainty, and easier financing,” he added.
One of the STDB recipients, farmer Idris, expressed newfound hope. “In the past, we struggled to borrow from banks because our plantations were not recognized. Now, with the STDB, we can apply for loans for plantation maintenance or equipment purchases. This is crucial for us,” he said. Idris also mentioned that his cooperative has received training on non-destructive cultivation practices.
Acting Head of the East Kutai Agriculture Office, Iip Sumirat, added that the STDB verification process was conducted rigorously and comprehensively. “We ensure there is no overlap with protected areas or production forests. This STDB serves as a foundation for moving towards ISPO, sustainable cultivation training, and strengthening cooperative institutions,” Iip explained.
With a total of 1,434 hectares of smallholder land now officially registered, the East Kutai Government aims to ensure that all smallholder palm oil plantations are documented, verified, and supported. This program is also part of the regional development roadmap that positions farmers as the main subjects in the transition towards low-emission and sustainable economic development.
In addition to supporting productivity and farmer welfare, this initiative is also part of Indonesia's climate diplomacy strategy on the international stage. Legal and deforestation-free smallholder palm oil is seen as Indonesia's tangible contribution to meeting global demands for sustainable commodity supply chains.
“Legality and sustainability are the two key words for the future of smallholder palm oil in Kutai,” Ardiansyah asserted. For the 614 farmers now registered, the long journey towards inclusive and equitable sustainable plantations officially begins in Sangatta. (T2)
