Asian Agri distributed premiums worth IDR 3.6 billion to 30,000 plasma farmers during a premium sharing event held last Tuesday.
Smallholders who are eligible to receive the premiums (through their cooperatives) must be RSPO certified.
“Premiums have been distributed since 2013, and it is expected that the grant will aid even more farmers to gain RSPO certification,” said Fadhil Hasan, Asian Agri’s Director of Corporate Affairs.
Asian Agri sets aside an annual premium fund based on the profits from exporting palm oil, which is distributed to its partner smallholders.
Premiums are not distributed as cash, but rather in the form of infrastructure assistance such as the construction of new roads for the smallholders’ villages. This assistance is facilitated through the farmers’ cooperatives, as required.
“The number of cooperatives which will receive premiums this year is 72,” said Fadhil.
Asian Agri runs a One to One Commitment program, which sees the company matching each hectare of its own land with one hectare of land owned by smallholders by the end of 2018.