24 March 2025, Singapore – Impact fund manager Abler Nordic has partnered with Temasek Foundation, a Singapore-based philanthropic organisation that drives impact programmes in Asia, together with sustainable palm oil producer Musim Mas, and Livelihoods Funds to launch the Sustainable Oil Palm Replanting in Indonesia (SOPRI) project. The pilot initiative facilitates access to financing and resources for smallholders to sustainably replant oil palms, increasing their income while preventing forest encroachment.
In Indonesia, smallholders cultivate over 40% of the country’s oil palm land but face a significant challenge: aging oil palms that reduce yields, making replanting an urgent and costly necessity. Without access to affordable financing, some smallholders may expand into rainforest areas, accelerating deforestation and climate change.
The SOPRI project is a key component of Abler Nordic’s broader Climate Smart Fund—launched in the pilot phase with funding from the Norwegian Ministry of Climate and Environment—combining public, philanthropic, and private capital to create deforestation-free value chains and support smallholder resilience projects. Temasek Foundation strengthens this blended finance model by setting aside catalytic capital to guarantee and derisk loans to smallholders for the SOPRI project, thereby reducing financing costs for smallholders and de-risking private investment.
In its first phase, the SOPRI project will support 400 smallholders across 400 hectares in Sumatra, offering long-term replanting loans, financial literacy training, sustainability certification, land title support, and participatory village planning to promote responsible land use. In return, smallholders commit to avoiding forest encroachment, monitored through satellite and on-the-ground checks.
The project is designed to demonstrate that sustainable replanting is both financially viable and scalable, with future phases aiming to reach over 20,000 smallholders.
The Climate Smart Fund will act as the lead organisation, managing financial operations and coordinating implementation with local partners such as Koltiva and Bank Amar. Musim Mas is providing technical support to help smallholders achieve sustainable palm oil certification and access markets, while Livelihoods Funds brings expertise in training and certification to help farmers transition to sustainable practices.
Beyond replanting, the project is also exploring climate-resilient agroforestry models, integrating oil palms with shade trees and cash crops to improve soil health, regulate microclimates, and support smallholders in adapting to climate change.
Abler Nordic now aims to expand the broader Climate Smart Fund from the initial USD 10 million fund to 40 million USD in its first close, using a mix of investor capital, guarantees, and grants to scale concrete and sustainable climate action.
Arthur Sletteberg, Managing Director of Abler Nordic, said: “Building long-term relationships with local smallholders, communities and partners is at the heart of our work. What we’re doing is complex and unprecedented in many ways, but the results so far demonstrate that we have the right model and risk mitigation to expand the Climate Smart Fund and create long-term, meaningful change for both smallholder farmers and the climate.”
Sébastien de Royer, Senior Project Manager – Southeast Asiaof Livelihoods Ventures, said: “At Livelihoods Ventures, we believe in long-term solutions that address challenges at their root. Through this partnership, we aim to empower smallholders with the technical support and advisory needed to transition to sustainable and resilient farming systems.”
Mr Rob Nicholls, General Manager of Projects and Partnerships, Musim Mas, said: “This initiative is not just about financial support; it is about empowering smallholders with the knowledge and resources they need to implement sustainable practices. We believe that through collaboration and commitment, we can create a positive impact on both the environment and the communities involved in palm oil production.”
Ms Heng Li Lang, Head of Climate and Liveability of Temasek Foundation, said: “This pilot initiative will be a game-changer. By unlocking financing with catalytic capital, smallholders can replant sustainably without bearing huge financial risks. Temasek Foundation is committed in collectively building this Public-Private-Philanthropic partnership with Abler Nordic, Livelihoods Funds and Musim Mas in Nature-based Solutions. We are not only driving positive environmental impact, but also paving the way for scalable and meaningful long-term solutions.”
About Abler Nordic
Abler Nordic (formerly Nordic Microfinance Initiative) was established in Oslo in 2008 as a public-private partnership investing in companies in Africa and Asia that offer financial services to low-income households. Abler Nordic currently manages six funds (including the Climate Smart Fund), with total commitments of USD 470 million.
Investors include the Norwegian and Danish governmental funds for investments in developing countries (Norfund and IFU) and private financial institutions and family offices from Norway and Denmark. Since 2008, the Ministry of Foreign Affairs and Norad have contributed funds for currency hedging and technical assistance. Abler Nordic has local teams in Jakarta, Kalimantan, Nairobi, Delhi, Copenhagen and Oslo. www.ablernordic.com. Media inquiries: Head of Communication, Alessia Molteberg: am@ablernordic.com | +47 40109112
About Musim Mas
Musim Mas Group is an integrated palm oil company globally, operating in 13 countries. From plantations, mills, refineries, kernel-crushing plants, oleochemicals, and specialty fats plants, Musim Mas manufactures palm oil products and value-added derivatives. Musim Mas is one of the largest palm oil producers in the world. The Group develops innovative value-added solutions for its customers, supported by Research and Development (R&D) centres in Singapore and Indonesia. Inter-Continental Oils and Fats (ICOF), a member of Musim Mas Group, undertakes global marketing activities.
The Group is committed to sustainability and was the first company with significant operations in Indonesia to join the Roundtable on Sustainable Palm Oil (RSPO) in 2004. Committed early to emissions reductions, Musim Mas is a signatory to the Agriculture Sector Roadmap to 1.5 Degrees convened by the Tropical Forest Alliance. The roadmap aims to halt commodity-linked deforestation in line with the 1.5-degree pathway while enhancing the livelihoods of smallholder farmers and supporting the sector’s transformation toward forest-positive land-use management. In January 2024, Musim Mas announced that it will strive to achieve net zero by 2050, aligning with climate science as per the Science Based Targets Initiative (SBTi). Musim Mas also manages the most extensive independent smallholder programs in Indonesia.
About Temasek Foundation:
Temasek Foundation supports a diverse range of programmes that uplift lives and communities in Singapore and beyond. Made possible through philanthropic endowments gifted by Temasek, an investment company headquartered in Singapore, Temasek Foundation’s programmes strive towards achieving positive outcomes for individuals and communities now, and for generations to come. Collectively, Temasek Foundation’s programmes strengthen social resilience, foster international exchange and regional capabilities, advance science, and protect the planet. For more information, visit www.temasekfoundation.org.sg.
About Livelihoods Funds:
The Livelihoods Funds bring together a coalition of private & public actors committed to restore degraded natural ecosystems, build sustainable supply chains, and improve the livelihoods of millions of rural communities. Created in 2015, the Livelihoods Fund for Family Farming (L3F) is an innovative investment vehicle of the Livelihoods Funds co-founded by Mars Incorporated and Danone, later joined by Firmenich and Veolia. The fund pursues a dual mission: help committed brands move to sustainable sourcing models while improving the livelihoods of smallholders. With an investment target of 85 million euros over 10 years, L3F provides timely support for the adoption of regenerative agriculture practices, the empowerment of a new generation of farmers and the restoration of natural resources.
L3F has previously built strategic coalitions in the coconut, vanilla, and shea value chains in the Philippines, in Madagascar and Ghana. This time, L3F has leveraged its expertise in agroecology and sustainable sourcing to co-design this new palm project activities which rely on regenerative agriculture and agroforestry. It has brought together a coalition of actors committed at every step of the value chain to achieve the transition.
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