76 Asian Agri cooperatives receive sustainable palm oil premiums

SINGAPORE - Media OutReach Newswire - 31 December 2025 - Asian Agri reaffirmed its commitment to sustainable palm oil development by recognising its scheme smallholders in Riau and Jambi through the 2024 Certified Palm Oil Premium Sharing Programme. The appreciation event, held at Hotel Santika, Bukittinggi, West Sumatra, highlighted the consistent efforts of smallholders in applying sustainable plantation practices aligned with international certification standards.

The programme generated approximately Rp5.5 billion in premium sharing, which will be distributed to 76 Village Unit Cooperatives (KUDs), benefitting more than 30,000 smallholders. The initiative underscores Asian Agri's long-term commitment to improving smallholder welfare while advancing environmentally responsible palm oil management.

Head of Partnership at Asian Agri, Rudy Rismanto, said RSPO certification plays a critical role in expanding market access for smallholder-produced palm oil.

"Through RSPO certification, palm oil produced by our partner smallholders can be accepted in global markets, including Europe, which requires sustainably produced products," Rudy said. "The premiums received are reinvested to improve productivity, upgrade infrastructure, strengthen KUD facilities and support alternative sources of income. In this way, sustainability delivers tangible economic benefits for smallholders."

Rudy emphasised that Asian Agri's sustainability approach goes beyond environmental stewardship to include social and economic impact.

"Through strong collaboration with smallholders, we ensure that sustainable practices also translate into improved livelihoods. This reflects Asian Agri's philosophy of creating benefits for society, the environment, customers, and ultimately the company itself—so that sustainability and prosperity grow together."

Representing partner cooperatives, Subiyono, Head of Karya Bersama KUD, said the premium sharing scheme has delivered clear and measurable benefits.

"The premium has provided meaningful support to both smallholders and the cooperative," he explained. "In 2026, we plan to allocate these funds to improve and maintain roads that serve as the main access routes for transporting Fresh Fruit Bunches to palm oil mills. Better infrastructure will help ensure smoother operations for smallholders."

Karya Bersama KUD is currently participating in a replanting partnership with Asian Agri. The replanted oil palm area, now 49 months old, has achieved an average productivity of 2 tons per hectare per month.

Similarly, Waluyo, Head of Makmur Rezeki KUD, highlighted how the premium strengthens institutional capacity while supporting sustainable practices.

"The funds are allocated to strategic priorities, including improvements to fertiliser and herbicide warehouses, road upgrades, provision of personal protective equipment (PPE) for smallholders, and the installation of owl nesting boxes as part of natural pest control," he said. "These initiatives enable more environmentally friendly and efficient plantation management."

According to Waluyo, the programme also reinforces smallholders' commitment to sustainability.

"This support not only improves cooperative facilities and operations but also strengthens members' dedication to sustainable practices. We hope Makmur Rezeki KUD can continue to grow together with Asian Agri, so the benefits can be felt more widely by our members and surrounding communities."

Through the Certified Palm Oil Premium Sharing Programme, Asian Agri, a member of the RGE group of companies founded by Sukanto Tanoto, continues to invest in the long-term resilience of smallholders and cooperatives, ensuring that sustainable palm oil development delivers enduring social, economic, and environmental benefits for generations to come.

https://www.asianagri.com

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