InfoSAWIT, JAKARTA – Efforts to strengthen sustainability among Indonesia's independent oil palm Smallholders continue to gain momentum, with the Roundtable on Sustainable Palm Oil (RSPO) reporting that approximately Rp416 billion has been distributed through various incentive schemes to support the adoption of sustainable practices.
According to RSPO data, 41,134 independent Smallholders in Indonesia have participated in sustainability certification programmes covering a total area of 89,650 hectares between 2018 and 2026.
Guntur Cahyo Prabowo, Head of Global Smallholders at RSPO, emphasized that certification should not be viewed merely as an audit process or an administrative requirement. Instead, he described it as a strategic instrument for strengthening farmer organizations and ensuring the consistent implementation of sustainability principles.
"Certification requires entities or organizations capable of ensuring compliance with standards. At the same time, trust among farmers must be built so they are willing to organize themselves into groups," Guntur said during the RSPO Media Brunch on Friday (June 12, 2026).
He noted that one of the biggest challenges facing Indonesia's palm oil sector remains the large number of independent farmers operating outside formal organizational structures. Of the country's estimated 2.6 million oil palm farmers, the majority still manage their plantations independently.
This situation, according to Guntur, limits Smallholders' access to certification, financing opportunities, and broader market channels. In addition, the lengthy supply chain between Smallholders and palm oil mills often reduces farmers' bargaining power and economic returns.
"Our hope is that when farmers organize themselves into groups, they can strengthen their bargaining position and potentially access markets more directly," he explained.
Global Regulations Increase Traceability Requirements
Guntur highlighted that international market dynamics are increasingly shaped by stricter traceability requirements. Export destinations, particularly in Europe, are demanding greater assurance that palm oil products originate from legal and responsibly managed sources.
"Markets want to know exactly which farmers produced the fruit and where it was grown. Such practices have become standard in international trade, while Indonesia still faces various challenges in implementing them," he said.
To help independent Smallholders meet these expectations, RSPO has developed standards tailored to local conditions. Capacity-building programmes are being implemented in collaboration with local governments, universities, private sector stakeholders, and development partners.
These initiatives focus on promoting sustainable agricultural practices, strengthening farmer organizations, and assisting Smallholders in meeting certification requirements.
Globally, RSPO has allocated approximately US$5.5 million in support funding since 2013 for Smallholder empowerment programmes, with around US$1.94 million directed toward Indonesia.
Despite the substantial financial support, Guntur stressed that programme success should not be measured solely by the amount of funding disbursed.
"What matters most is not the assistance itself, but its long-term impact on improving farmers' livelihoods and enhancing their ability to implement sustainable practices," he said.
He added that land legality remains a fundamental requirement in the certification process. Once this prerequisite is fulfilled, continuous mentoring and technical assistance become essential to ensure farmers maintain the sustainability standards they have achieved.
As global sustainability expectations continue to evolve, RSPO believes that strengthening Smallholder institutions and expanding access to certification will be key to improving the competitiveness of Indonesia's independent oil palm farmers while supporting the transition toward a more inclusive and sustainable palm oil sector. (T2)
