CPOPC Smallholders Workshop and Field Visit: “Challenges of Smallholders Achieving Sustainable Certification and Lessons Learnt”

The workshop on “Challenges of Smallholders Achieving Sustainable Certification and Lesson Learnt” and field visit organized on the initiative of the Secretariat of Council of Palm Oil Producing Countries (CPOPC) was held in Medan, North Sumatera, Indonesia, on 22 – 23 November 2022. This program identified the challenge amongst smallholders in Indonesia to achieve sustainable certification and mapped out potential activities to enhance their capacity to achieve the sustainability measures. Smallholder farmers managed up to 40 percent and 27 percent of the total oil palm plantation area in Indonesia and Malaysia respectively.

At his opening remarks, Secretary General of CPOPC, Dr. Rizal Affandi Lukman emphasized the crucial role of smallholders on the Sustainable Development Goals (SDGs) in particular SDGs 12, responsible consumption and production. “CPOPC is fully committed to improving the welfare of smallholder oil palm farmers, strengthening cooperation in oil palm cultivation and establishing a framework of principles for sustainable palm oil,” said Rizal.   

Highlighting the challenges on the implementation of agricultural practices by the smallholders, Deputy Minister for Food and Agribusiness, Coordinating Ministry for Economic Affairs, the Republic of Indonesia, Dr. Musdhalifah Machmud underscored the government’s policy on national certification scheme. “Smallholders still need to uphold the sustainability principles and implement them in their operational activities as mandated by the Government.  In Indonesia, the Indonesia Sustainable Palm Oil (ISPO) will become mandatory for smallholders by 2025,” said Musdhalifah.

Deputy Secretary General (Plantation & Commodities), Mad Zaidi Mohd Karli, reiterated the continued efforts to reinforce the implementation of Malaysian Sustainable Palm Oil (MSPO) as a catalyst for transforming the palm oil industry including smallholders toward sustainability. “Continuous efforts have been undertaken to accelerate smallholder certification, to develop scattered smallholdings through cooperative approach, and to resolve any other related issues. This is evident that Malaysia shows unceasing commitment towards global sustainability of the palm oil industry.” said Mad Zaidi.

On the first and second day of the workshop, knowledgeable resource persons and key practitioners from Ministry of Agriculture, CMEA, MPIC, MPOB, ISPO Secretariat, MPOCC, NASH, APKASINDO, BPDPKS, and representatives of smallholders presented their views on the challenges, potentials, and required efforts as well as supporting policies to enhance smallholders’ capacity towards the sustainable certification. The workshop recognized that the supports from the government, private sector, and other collaborators are crucial for the smallholders in order to acquire their sustainability certification. The discussions acknowledged that sustainable certification is important towards their profitability and sustainability. The ability to obtain certification will help towards increasing the yields and hence their income potentials. The findings on the gap analysis between ISPO and MSPO indicates the role of CPOPC can take in facilitating these national mandatory schemes. 

As part of the workshop, the 12 Indonesian and 14 Malaysian smallholders participated on field visit to the Gallery of Oil Palm, Seed Production Unit, and the Museum Perkebunan Indonesia at PPKS (Indonesia Oil Palm Research Institute) as well as a smallholder’s plantation in Deli Serdang to gain valuable insights on the good agricultural practices observed at these sites.

The takeaway from the workshop is the need for the smallholders to work and cooperate closely with the relevant stakeholders in addressing all challenges and issues faced by the smallholders and the authorities. CPOPC has also agreed that as part of the continues policy towards enhancing the welfare and the well being of the smallholders, follow up event shall be organized in Malaysia next year.