32
INDOFOOD AGRI RESOURCES LTD
SUSTAINABILITY REPORT 2014
SOUTH SUMATRA’S
SMALLHOLDER PROJECT
In the quest to establish full traceability by 2019, IndoAgri
has established a strategic partnership with IDH, an
international development organisation in 2014. The aim
of the collaboration is to build capacity in local farmer
organisations, known as Koperasi Unit Desa (KUD). In
turn, the KUDs will reach out to their members and provide
assistance and training on good agricultural practices,
productivity, profitability, land management and RSPO
certification to individual smallholders.
In South Sumatra, our subsidiary Lonsum has selected
3,144 smallholders, who are responsible for a total of
6,141 hectares of plantation, to join the first group
of smallholders to be RSPO
-
certified. The FFBs from
these plots are purchased at government
-
set pricing and
processed by Lonsum before being supplied as CPO to
SIMP’s refineries in Jakarta and Surabaya.
South Sumatra was chosen for this pilot as most of
the farmers have repaid their loans and are farming
independently. We assembled a team to be trained by
IDH. Thereafter, the team will impart their knowledge to
the KUD staff and work together with them to train the
rest of the smallholders who have enrolled for this project.
The project is expected to enable the participating
smallholders:
7R DFKLHYH 5632 VWDQGDUGV
7R HQKDQFH WKHLU IDUPLQJ VNLOOV IRU EHWWHU TXDOLW\ \LHOGV
and improved livelihoods; and
7R DSSUHFLDWH UHVSRQVLEOH IDUPLQJ +&9 PDQDJHPHQW
practices, and the negative impact of deforestation and
GHG emissions due to land change.
We have started the project with 159 smallholders from the
Teratai Biru KUD in the Muba Region, and aim to achieve
the following:
,QLWLDWH IRUPDO 5632 WUDLQLQJ IRU VPDOOKROGHUV
$VVLVW 5632 VPDOOKROGHUV LQ WKH LPSOHPHQWDWLRQ RI *RRG
Agricultural Practices to accelerate RSPO certification;
0D[LPLVH \LHOG FRQWURO IHUWLOLVHU GRVDJH DQG UHGXFH
N
2
O emissions;
,PSURYH +&9 PDQDJHPHQW DQG WKH PRQLWRULQJ RI
estates and smallholdings;
$WWDLQ 5632 FHUWLILFDWLRQ IRU DOO
VPDOOKROGHUV
hectares of plasma plots) by 2015;
$WWDLQ 5632 FHUWLILFDWLRQ IRU WKH
VPDOOKROGHUV DQG
6 KUDs (6,141 hectares) in South Sumatra by 2016;
(VWDEOLVK D GDWDEDVH XVLQJ WKH ,)&
3
diagnostic tools to
monitor agronomic performance;
6HFXUH IXQGLQJ DQG ORDQV IURP ILQDQFLDO LQVWLWXWLRQV IRU
the replanting of trees, fertilisers, road improvement
and equipment;
6WUHQJWKHQ .8'·V FDSDFLW\ WR PDQDJH LWV VPDOOKROGHUV
6WUHQJWKHQ WKH UHODWLRQVKLSV EHWZHHQ ,QGR$JUL DQG WKH
local communities; and
$FKLHYH EDVHOLQH PDSSLQJ RI FXUUHQW SUDFWLFHV
with Aidenvironment, an independent sustainability
consultant.
3
International Financial Corporation is a member of the World Bank and the largest global development institution focusing on the private sector in
developing nations.
