IndoAgri is committed to supporting smallholders and independent farmers in achieving ISPO certification in alignment with Presidential Regulation No. 16/2025 and the national timeline for mandatory certification. We provide targeted training and financial assistance to help cover certification costs and ensure compliance with the updated requirement. ISPO certification promotes best practices such as protecting HCV areas, proper plantation management, labour standards, and health and safety compliance. Our training covers key requirements, including water conservation during droughts and riparian management within HCV zones. This provides smallholders with the capacity to optimise their cultivation, effectively reduce their environmental impact, and secure higher incomes. Following the successful ISPO certification of one KUD in 2023, we now have a total of four ISPO-certified KUD with one additional cooperative part way through the audit process. We are also working with the rest of our smallholders to help them achieve compliance. IndoAgri has adopted a region-specific approach to supporting smallholders in improving both productivity and sustainability. Our models vary, ranging from “One Roof” management (a centralised system for processing and logistics) to the “Active Plasma” model (where smallholders partner directly with the company). We collaborate with village cooperatives known as KUDs on best management practices and environmental management. We also participate in the national Rejuvenation Scheme (Peremajaan Sawit Rakyat, PSR), to replant mature oil palm areas. These efforts have led to partnerships such as our one with the KUD Sumber Sawit Nusantara cooperative, covering 268 hectares. We are committed to achieving mutual benefits through smallholder engagement, prioritising the continuous strengthening of trust and good relations with farmers and KUDs for effective operations. Mrs. Husna Latifah began her journey as a palm oil farmer and, through years of perseverance, became a Lonsum partner through KUD Marga Makmur. Through this collaboration, she gained access to superior seeds, high‑quality fertilisers, and ongoing technical guidance, providing a strong foundation for the professional and efficient management of her palm oil plantation. This support has contributed to measurable improvements in plantation productivity. The FFB she produces consistently meet PT Lonsum’s standards, ensuring a stable source of income for her family. Market certainty and fair pricing from PT Lonsum have also provided a level of security and economic stability that was previously difficult to achieve. Today, Mrs. Husna Latifah’s achievements extend beyond personal success and serve as an example for other members of KUD Marga Makmur. Her experience demonstrates how effective collaboration between independent farmers and large companies can support economic independence in rural communities. Husna Latifah, one of our smallholders from KUD Marga Makmur. Testimony of Harvesting Prosperity: The Success Story of Mrs. Husna Latifah with PT Lonsum 44 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
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