Asian Agri distributed premiums obtained from the profits of exporting palm oil to 72 heads of Village Unit Cooperatives (KUD) who oversee the company’s partner farmers.
All farmers who received the premiums are smallholders who already have RSPO and ISCC certification.
“The amount of premiums we provided was IDR 3.69 billion. The premiums come from the sale of RSPO and ISCC certified palm oil,” said Fadhil Hasan, Asian Agri’s Director of Corporate Affairs.
Premiums are not distributed in cash, but rather in the form of infrastructure assistance in line with the needs of each cooperative.
“This infrastructure can be village roads or other public facilities. Our hope is that the premium amount will increase even more next year,” said Fadhil.
According to Fadhil, distribution of the premiums in this way first started in 2014 and is held annually by Asian Agri.
Ir. Agus Muharam, Secretary of the Ministry of Cooperatives and Small and Medium Enterprises in Indonesia, expressed appreciation towards Asian Agri’s efforts to improve the welfare of farmers.
According to him, this is in accordance with the third point of the Nawa Cita (National Priority Agenda) concerning the welfare of villages in Indonesia.
“The distribution of palm oil premiums is an example of a good partnership between a company and its partners, which in this case is Asian Agri and the smallholders,” Agus said.