The workshop on “Challenges of Smallholders Achieving Sustainable Certification and
Lesson Learnt” and field visit organized on the initiative of the Secretariat of Council of
Palm Oil Producing Countries (CPOPC) was held in Medan, North Sumatera, Indonesia,
on 22 – 23 November 2022. This program identified the challenge amongst smallholders
in Indonesia to achieve sustainable certification and mapped out potential activities to
enhance their capacity to achieve the sustainability measures. Smallholder farmers
managed up to 40 percent and 27 percent of the total oil palm plantation area in
Indonesia and Malaysia respectively.
At his opening remarks, Secretary General of CPOPC, Dr. Rizal Affandi Lukman
emphasized the crucial role of smallholders on the Sustainable Development Goals
(SDGs) in particular SDGs 12, responsible consumption and production. “CPOPC is fully
committed to improving the welfare of smallholder oil palm farmers, strengthening
cooperation in oil palm cultivation and establishing a framework of principles for
sustainable palm oil,” said Rizal.
Highlighting the challenges on the implementation of agricultural practices by the
smallholders, Deputy Minister for Food and Agribusiness, Coordinating Ministry for
Economic Affairs, the Republic of Indonesia, Dr. Musdhalifah Machmud underscored
the government’s policy on national certification scheme. “Smallholders still need to
uphold the sustainability principles and implement them in their operational activities as
mandated by the Government. In Indonesia, the Indonesia Sustainable Palm Oil (ISPO)
will become mandatory for smallholders by 2025,” said Musdhalifah.
Deputy Secretary General (Plantation & Commodities), Mad Zaidi Mohd Karli, reiterated
the continued efforts to reinforce the implementation of Malaysian Sustainable Palm Oil
(MSPO) as a catalyst for transforming the palm oil industry including smallholders toward
sustainability. “Continuous efforts have been undertaken to accelerate smallholder
certification, to develop scattered smallholdings through cooperative approach, and to
resolve any other related issues. This is evident that Malaysia shows unceasing
commitment towards global sustainability of the palm oil industry.” said Mad Zaidi.
On the first and second day of the workshop, knowledgeable resource persons and key
practitioners from Ministry of Agriculture, CMEA, MPIC, MPOB, ISPO Secretariat, MPOCC,
NASH, APKASINDO, BPDPKS, and representatives of smallholders presented their views
on the challenges, potentials, and required efforts as well as supporting policies to
enhance smallholders’ capacity towards the sustainable certification. The workshop
recognized that the supports from the government, private sector, and other
collaborators are crucial for the smallholders in order to acquire their sustainability
certification. The discussions acknowledged that sustainable certification is important
towards their profitability and sustainability. The ability to obtain certification will help
towards increasing the yields and hence their income potentials. The findings on the gap
analysis between ISPO and MSPO indicates the role of CPOPC can take in facilitating
these national mandatory schemes.
As part of the workshop, the 12 Indonesian and 14 Malaysian smallholders participated
on field visit to the Gallery of Oil Palm, Seed Production Unit, and the Museum
Perkebunan Indonesia at PPKS (Indonesia Oil Palm Research Institute) as well as a
smallholder’s plantation in Deli Serdang to gain valuable insights on the good agricultural
practices observed at these sites.
The takeaway from the workshop is the need for the smallholders to work and cooperate
closely with the relevant stakeholders in addressing all challenges and issues faced by the
smallholders and the authorities. CPOPC has also agreed that as part of the continues
policy towards enhancing the welfare and the well being of the smallholders, follow up
event shall be organized in Malaysia next year.