Page 56 - sr_2013.PDF

PROGRAMME 4: SMALLHOLDERS
PROGRAMME OBJECTIVE
We aim to achieve 100% traceability of our CPO from our mills by 2019. This shall be achieved through the auditing of our
plasma smallholders against ISPO and RSPO standards. This programme is in line with the ISPO requirement Principle 6 for
community empowerment.
PLASMA SMALLHOLDERS
IndoAgri fully supports the Nucleus-Plasma Scheme that was created by the Indonesian government for plantation companies (nucleus)
to develop oil palm plots near their plantations for smallholders (plasma). Plasma plots are typically two hectares of oil palm plus one
hectare of other crops. In 2013, we managed 86,215 hectares operated by smallholders.
The scheme requires the nucleus to assist the plasma farmers to develop and manage their plots up to a predetermined stage,
typically within three to four years, before the management of the plasma plots are handed back to the plasma farmers. The plasma
can continue to receive land management assistance from the nucleus for a management fee under a separate Koperasi Kredit Primer
Anggota scheme.
Plasma farmers who do not have sufficient capital resources can seek external financing to develop and manage their plasma plots.
Financing is provided by the local banks or the nucleus, and covers the direct development costs from the preparation to the transfer
of the plasma plots back to the smallholders.
About 50% of our oil palm plasma smallholders are managed independently, the remaining half is managed by IndoAgri. As plasma
smallholders are integral to our value chain, they have to be enrolled in the ISPO and RSPO certification schemes.
We have begun the RSPO audits for plasma smallholders and we shall have the first plasma smallholders certified in 2015. All our
plasma smallholders are required to attain both ISPO and RSPO certifications by 2019.
We further support smallholders through our participation in the PISAgro (see page 32).
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Materiality Issues Landrights, Smallholders, Carbon Footprint, and Yield Maximisation Environmental Footprint,
OHS, Product Traceabilty, Human Rights
IndoAgri Principles
Target Groups All plasma plantations of the Group
Targets See page 8 on the RSPO and ISPO Audit Targets for Smallholders
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