Asian Agri Appreciates Plasma Palm Oil Farmers and Shares a Premium Of IDR 3.8 Billion
PEKANBARU – Asian Agri presents rewards to the plasma farmers it helps via premium share
on sales of certified palm oil or in 2023.
The total premium distributed reached more than IDR 3.8 billion to 38 Village Unit Cooperatives, which include around 15,000 plasma farmers, in the event which took place at the Grand Jatra Hotel Pekanbaru, Thursday (12/12/2024).
The premium sharing program is a form of Asian Agri's appreciation for plasma farmers who consistently implement sustainable plantation practices in accordance with international certification standards.
Pengarapen Gurusinga, Regional Head of Asian Agri Riau, said that the goal of this program is
to encourage plasma farmers to continue maintaining and improving the quality of their
plantation goods.
“Farmers may help a sustainable palm oil sector by retaining Roundtable on Sustainable Palm Oil accreditation, particularly in overseas markets like Europe that favor ecologically friendly goods,” said Pengarapen.
According to him, RSPO accreditation adds value to plasma farmers by providing access to a worldwide market that is becoming more selective about accepting palm oil goods.
Meanwhile, Rudy Rismanto, the Head of Partnership at Asian Agri, noted that collaborations with plasma farmers are one of the company's sustainable business strategies.
“This partnership provides benefits for both parties. Apart from guaranteeing the company's supply of raw materials, farmers also receive assistance with optimal plantation management and guaranteed purchase of their harvest,” explained Rudy.
“It is anticipated that the success gained by the first generation of plasma farmers would be
sustained by the following generation,” he continued.
Sudiyono, Chairman of the Jaya Makmur Village Unit Cooperative, who has partnered with Asian Agri since 1990, revealed that he and the Village Unit Cooperative's members have continued to receive guidance on sustainable oil palm cultivation over the past 35 years.
"Asian Agri also helped complete the administration for certification, so that we regularly received premium sharing from 2013 until this year,” said Sudiyono.
According to him, the premium funds are used to strengthen farmer groups and support
alternative income during the rejuvenation period of oil palm plantations.
“We feel supported in a variety of ways, including administrative preparation and technological aid,” he added.
Separately, Anton Suhartono, Secretary of the Sawit Subur Village Unit Cooperative, emphasized the significance of the replanting initiative using better Topaz seeds from Asian
Agri.
“This seed has been proved to boost productivity by up to 28 tons per hectare in the third year of production, quicker than other seeds that need up to 36 months,” explained Anton.
He also discussed how the Sawit Subur Village Unit Cooperative successfully replanted 538
hectares of land in 2019 and 144 hectares in 2024.
"We are not worried about losing income during the replanting period because of the financial support from the Palm Oil Plantation Fund Management Agency (BPDPKS) and the use of premium sharing funds for alternative income, such as raising organic free-range chickens,” he said.
Asian Agri's premium sharing and partnership program has had a positive impact on plasma
farmers, not only in increasing productivity, but also in supporting the sustainability of the palm oil industry.
This step also demonstrates Asian Agri's dedication to the well-being of plasma farmers and environmental sustainability. (release)
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