Independent Farmers Assisted by SSMS and Ecogreen in Lamandau Get Incentives from RSPO Credit Sales

Independent Planters, Assisted by PT Sawit Sumbermas Sarana Tbk. and PT Ecogreen in Lamandau Regency, BUMDes Berkah Mulya Jaya, Mekar Mulya Village, managed to get an incentive of IDR 762 million from the sale of RSPO (Roundtable Sustainable Palm Oil) credits. Their credit was purchased by international buyers, namely Unilever and Nestle.

The incentives were then distributed to all members of 126 planters, who were divided into five groups. Apart from providing incentives to members, BUMDes BMJ also handed over CSR assistance in bags and stationery for two schools worth IDR 6.2 million, village contributions amounting to IDR 12.4 million, and village business development cash amounting to IDR 15.5 million. Some of these incentives are also set aside for the provision of BUMDes facilities and equipment and subsequent certification activities.

The distribution of incentives, which was held at the Mekar Mulya Village Hall on Tuesday, 20 March 2024, was attended by dozens of representatives of BMJ BUMDes planters. Also, present at the incentive handover ceremony were representatives of the Agriculture Service, Environmental Service, BPN, Lamandau DPMD, Sematu Jaya Subdistrict Head, Sematu Jaya Police and Babinsa, APKSM Kobar, as well as companions from PT SSMS Tbk and Ecogreen.

Choirul Fuadi, as Director of BUMDes BMJ, expressed his pride and emotion because the struggle of independent smallholders since 2021 has now felt the benefits, one of which is incentives from credit sales. BUMDes BMJ first received an RSPO certificate at the RSPO Roundtable Conference (RT) international event in Jakarta in 2023

He explained that in the journey to obtain an RSPO certificate, the support of two companions, PT SSMS Tbk and PT Ecogreen, was not spared.

Choirul targets that BUMDes BMJ will invite more planters to join the movement for sustainable garden management. In 2024, there will be an additional 328 planters with a potential oil palm plantation area of 966.35 hectares who will take part in certification.

SSMS Sustainability Manager Andri Nadjiburahman, on the sidelines of the incentive distribution activity, explained that the incentives received by the planters were only an additional bonus. "The direct benefit that planters have felt is that when the palm oil harvest is harvested, production increases. "This RSPO certification teaches growers to apply the best plantation management practices so that their production results are maximized, at least close to those produced by the company," he said.

Furthermore, Andri said that SSMS would again initiate collaboration with Ecogreen to accompany and support BUMDes BMJ planters in the RSPO certification program. Not only for the first year, but for the following years until BUMDEs can independently carry out the RSPO certification program, both within the organization and the growers.

He hopes that BUMDes can expand the scope of this program, not only focusing on Mekar Mulya Village but also surrounding villages that can actively participate in this certification program. Of course, this will be a source of pride for Sematu Jaya District and Lamandau Regency.

At the end of his speech, Andri said that SSMS and Ecogreen had agreed to encourage BUMDes BMJ to obtain ISPO certification in 2025. In this way, BUMDes BMJ would become the first and only group of independent smallholders in Lamandau Regency that had RSPO and ISPO certification.

On this occasion, Ecogreen, represented by Dico Satriyo W., congratulated the BUMDes BMJ planters for their extraordinary achievements. "The receipt of this incentive is clear evidence of the extraordinary perseverance and dedication of independent smallholders in realizing sustainable palm oil industry practices, of course this will increase the positive image of smallholders in the global market," he continued.

According to Dico, this achievement not only belongs to the growers but is the result of close collaboration between independent growers, SSMS, Ecogreen, and the stakeholders involved. For this reason, Ecogreen really appreciates all parties who have made positive contributions to the achievements of this program.

Ecogreen hopes that this success will be the first step for growers to achieve greater success in the future and that this partnership will become a role model for other stakeholders to realize sustainable palm oil plantation practices among growers.