InfoSAWIT, JAKARTA – Land legality remains a major hurdle for independent palm oil smallholders seeking to enter sustainable supply chains, with limited financial resources, mapping capacity and administrative knowledge complicating the process.

Rukaiyah Rafiq, Head of the Secretariat of the Indonesian Sustainable Palm Oil Smallholders Forum (Fortasbi), said land legality is among the key issues that need attention as smallholders are encouraged to participate in sustainability and traceability systems.

As reported by InfoSAWIT, Rukaiyah said many smallholders face difficulties when they are required to map their plantations and prepare land legality documents.

“What is really difficult for smallholders is mapping. They do not have the capacity and also do not have the money to map their land,” Rukaiyah said during a joint webinar organized by CPOPC and WWF Indonesia in Jakarta on September 18, 2026.

Land mapping is important because it provides clearer information about the location and status of agricultural land. Without adequate mapping, smallholders may face greater difficulties when completing legal and administrative requirements.

Smallholder Land Documents Take Different Forms

Rukaiyah explained that land legality among independent smallholders is not necessarily supported by uniform documentation.

Some farmers hold documents or letters issued by government institutions or village authorities as the basis for managing their land. Others obtained their plots through inheritance from their parents.

These different circumstances mean that land tenure and documentation among smallholders can vary considerably.

According to Rukaiyah, the situation needs to be viewed in the context of independent smallholders, many of whom still have limited institutional and administrative capacity to manage land documentation.

Some farmers may believe that the documents they currently hold are sufficient to establish their rights to manage the land. However, when supply chains require more comprehensive legality and traceability information, those documents may not always meet the required standards.

Cost is another challenge. Smallholders may need funding for land mapping, document processing and other administrative requirements related to their plantations.

Land Legality Becomes Part of Traceability

Rukaiyah said land legality is closely connected to traceability requirements in palm oil supply chains.

As markets increasingly demand information about where commodities originate, information about plantation locations and land status becomes increasingly important.

However, she said the issue cannot be addressed solely through government support. Smallholders' understanding of the purpose and benefits of land legality is also an important part of the challenge.

Greater awareness is needed so that legality is not viewed merely as an administrative obligation, but also as a means of providing greater certainty over the land being managed by smallholders.

Some Farmers Fear Legal Documents Could Make Land Easier to Sell

There is also a concern that affects some smallholders' willingness to formalize their land.

Rukaiyah said some farmers fear that obtaining more complete legal documentation could make their land easier to sell to other parties.

“If they already have land legality, they think the land will be easier to sell to someone else,” she said.

For that reason, strengthening land legality among palm oil smallholders requires more than administrative assistance. According to Rukaiyah, continuous guidance is also necessary to help farmers understand the long-term benefits of having clearer land documentation.

Land legality, mapping and traceability are closely connected. Strengthening these three aspects can help independent palm oil smallholders become more integrated into supply chains that increasingly require information about the origin of palm oil.

The challenge also shows that efforts to improve smallholder participation in sustainable palm oil supply chains need to consider not only market requirements, but also farmers' financial resources, technical capacity and understanding at the plantation level. (T2)