09 October 2023
Training for Smallholders
We train independent smallholders directly within the localities of our mills.
Independent smallholders are self-managed and not tied to any particular company. Consequently, they often lack access to updated farming practices needed to improve productivity. Additionally, they might not have the financial resources to replant aging palms leading to lower yields.
The result is lower profitability and sustainability standards. Research from the International Finance Corporation (IFC), a member of the World Bank, shows that independent smallholders’ yield can be as much as 116% below company plantations in Indonesia.
As smallholders depend on the forests and environment for their livelihood, it is essential to promote sustainable production of oil palm to ensure resilience and long-term economic growth.
2015Developing Indonesian |
2017Establishing the Extension |
2020Establishing the Smallholders Hub |
Musim Mas has developed and implemented various programs to integrate independent smallholders into the palm oil supply chain since 2015. We engage these smallholders and assist them in adopting efficient farming standards as industrial plantations by having them complete training modules covering good agricultural practices (GAP) and No Deforestation, No Peat, No Exploitation (NDPE) commitments. The programs also comprise of agronomic training, access to financial support and global markets, and education on legal requirements.
Through our proven experience working with IFC on independent smallholders, we are equipped and geared with the expertise to refine our program and curriculum further. Our approach to engaging the smallholders and curriculum has evolved as our program expanded, reflecting the challenges that smallholders are interested in or face on the ground.
Our modules mirror the RSPO’s Principles and Criteria (P&C) as we prepare them for RSPO certification. It categorizes the program modules within four pillars: Environment, Business Management, Social and Other challenges that smallholders may face in their journey towards sustainable palm oil. Check out our report for more details on each pillars.
Improving independent smallholders’ access to finance empowers them towards better profitability, social cohesion, and environmental protection. To facilitate this process, Musim Mas financed a working paper by the Singapore Institute of International Affairs (SIIA) to explore the prospect of providing green financing to independent smallholders.
Our engagement approaches have improved year after year through trials, lessons learnt, and milestones. Today, we have consolidated our approaches into two main streams to improve the livelihoods of independent smallholders: Training for Smallholders and Training for Trainers: Smallholders Hub.
 Training for Smallholders |
 Training for Trainers: Smallholders Hub |
Highlights
To expand our outreach further, Musim Mas began training independent smallholders in South Sumatra even though they largely contribute to our third party suppliers, and may not supply to Musim Mas.
This was launched as Musim Mas identified a need for training among smallholders in this region.
Results
Over 500 smallholders trained, covering over 600 hectares of land.
Highlights
Our first program for independent smallholder followed a joint study by Musim Mas and the International Finance Corporation (IFC) in 2013.
Supported smallholders through a comprehensive program covering environmental management, business management, social issues and other.
Results
Over 8,000 smallholders trained, covering 15,500 hectares of land.
Highlights
Launched a collaboration with General Mills and the local government to launch a smallholders hub in July 2020.
Following Aceh Tamiang, this is our second smallholders hub.
Results
Over 70 village officers trained, approx. 400 smallholders engaged, covering over 700 hectares of land
Highlights
Launched a collaboration with Nestlé and AAK for a five-year program to train approximately 1,000 independent smallholders by establishing a smallholders hub in September 2021.
Following Aceh Tamiang and Singkil, this is our third smallholders hub.
Results
Approx 80 village officers trained, approximately 90 smallholders engaged, covering over 200 hectares of land.
Highlights
Established our first smallholder hub to reach a wider range of smallholders, where we work with district governments to train agricultural officers/ Village Extension Officers (VEOs) on a train-the-trainer approach.
Through the smallholders hub, we established a common expertise and resource exchange platform for smallholders, palm oil growers and mills, buyers, local governments, and NGOs.
Launched radar-based forest monitoring system (RADD) enables near-real-time deforestation monitoring.
Results
Over 70 village officers trained, approx. 2,300 smallholders engaged, covering over 3,700 hectares of land.
