As the part of Asian Agri’s commitment to help partner smallholders manage their oil palm plantations sustainably, the company distributed premiums from the sale of certified sustainable palm oil, worth a total of Rp4,318,363,440. Fadhil Hasan, Asian Agri’s Director of Corporate Affairs opened the sharing event by bestowing the premiums obtained in 2017 to 72 Village Unit Cooperatives (KUD) in Riau and Jambi. Also in attendance was Riau Governor, Syamsuar.
“The partnership scheme which increases smallholders’ prosperity as well as educates them on sustainable principles is the reason for us to share the sustainable palm oil premiums with our partners,” Fadhil said in an official statement on Thursday (21/3/2019).
The distribution of premiums is also a form of appreciation for the commitment to sustainable oil palm management by Asian Agri’s partner smallholders, who have obtained RSPO and ISCC certification.
“It [premium distribution] is also intended to motivate our partner smallholders to ceaselessly implement only the best principles in managing their plantations, so they can preserve their sustainable certification. We hope that our method can be the answer to the challenges which hamper the future of the national sustainable oil palm industry,” Fadhil added.
As the most productive vegetable oil-producing plant, the oil palm industry must be able to deal with negative campaigns toward it. The partnership scheme between smallholders and oil palm companies is an effective method to curb deforestation and ensure the implementation of environmentally friendly management based on international standards.