Without replanting, the yield from plantations declines as the oil palms age. This can have a major impact on supply and, for smallholder farmers who rely on their plantations, their income.

Asian Agri carries out replanting in phases. While one block is renewed, other areas continue producing. This staged approach helps maintain steady supply to mills and reduces disruption across operations.

Replanting of oil palms supports:

• Production continuity across plantation cycles
• Stable and optimized mill capacity planning
• More predictable operational planning
• Stronger yield potential within existing land
• Certification readiness and ongoing compliance

Replanting is carried out systematically across Asian Agri’s own plantations and partner smallholder plantations. The process is planned years in advance to maintain production continuity while older areas are renewed.

The work follows a clear sequence in the field:

1. Identifying blocks for renewal
   Plantation age and yield trends are reviewed carefully. Soil condition, drainage systems, and field access are also assessed. Based on this evaluation, blocks are scheduled for phased renewal so overall estate performance remains balanced.

2. Clearing aging palms
   Trees that have passed their productive cycle are felled in a controlled manner. In larger blocks, machinery may be used. In tighter areas, trained workers carry out the process manually. Care is taken to protect surrounding infrastructure.

3. Managing biomass in the field
   Trunks and fronds are cut and arranged between rows rather than removed. Over time, this organic material decomposes and returns nutrients to the soil. It also helps maintain soil structure and reduces surface runoff during the transition period.

5. Planting new seedlings
   Asian Agri uses Topaz seeds planting materials developed by our Oil Palm Research Station. Seedlings are spaced in an area about 9 × 9 meters in a triangular pattern to allow balanced light exposure and nutrient uptake. Proper spacing supports healthier growth over the next planting cycle.
6. Managing the early growth period
   The first few years are closely monitored. Field teams manage weeds, check plant health, and address pest risks when needed. Regular supervision during this period helps ensure the new block develops steadily and contributes to long-term productivity.

For smallholders, replanting is not only an agronomic decision. It directly affects household income. When old palms are cleared, harvesting stops for several years until the new trees mature.

This income gap often leads smallholders to delay renewal, even when yields are already declining. During this transition period, our field teams work closely with smallholders to explain why replanting is important for the long term. Through field visits and cooperative discussions, we help smallholders understand how renewing aging palms can restore productivity and support more stable harvests in the future.

This work is carried out through Asian Agri’s Smallholder Partnership Program, which focuses on strengthening productivity, improving plantation management, and supporting the long-term resilience of smallholders.

To help smallholders manage this transition, Asian Agri works through cooperatives to make replanting more manageable. Support may include:

• Assistance in preparing documentation and accessing bank financing
• Acting as guarantor where applicable to reduce lending risk
• Support in applying for Indonesia’s Palm Oil Plantation Fund Management Agency (BPDPKS) government funding
• Ongoing agronomic guidance during the immature period
• Support for alternative income activities such as intercropping or small-scale livestock, depending on local conditions, as part of our broader smallholder partnership programs.

Our involvement continues throughout the transition period, with field teams supporting plantation management until the renewed areas return to stable production.

When replanted areas begin producing, yield levels recover and performance becomes more predictable.

Across our scheme smallholder network, replanted areas recorded an average yield of approximately 15.19 tons of fresh fruit bunches per hectare once in production.

This reflects a recovery in productivity and helps narrow the gap between smallholder plantations and larger estates, where yields are typically higher due to more structured field management and planting materials. While results vary by location and cooperative, the gains are supported using improved planting materials and consistent agronomic practices.

Progress across these areas is monitored and reported as part of Asian Agri’s annual Sustainability Report, which provides verified updates on operational and environmental performance.

We encourage our smallholders to use Topaz planting materials developed by our Oil Palm Research Station. These seeds are selected for stronger yield potential and resilience in the field. When combined with good agronomic practices, they help support higher productivity per hectare over the next planting cycle.

Replacing aging palm trees strengthens the land’s productive profile for the next 25 to 30 years. Healthier and more productive trees contribute to steadier harvest volumes and more efficient operations.

All renewal takes place within existing plantation boundaries. Productivity gains come from improving performance per hectare, not from expanding planted land. This supports long-term supply stability while maintaining responsible land use. This approach is aligned with Asian Agri’s Sustainability Policy, which guides responsible land use and environmental stewardship across our operations.