Asian Agri Promotes Sustainable Palm Oil Farming with Premium Sharing Program
In a bid to support sustainable palm oil farming practices, Asian Agri has distributed fair premiums to partner plasma farmers in the provinces of Riau and Jambi. The premium sharing initiative, which took place at the end of 2024, saw a total of over 6.18 billion Rupiah being handed out to 78 Farmer Groups (KUD) in both provinces, benefiting more than 27,500 farmer members.
Premiers worth more than 3.8 billion Rupiah were awarded to 38 KUDs with approximately 15,000 members in Riau on Thursday (12/12/2024). The following day, on Friday (20/12/2024), a total of 2.38 billion Rupiah was distributed to 40 KUDs with around 12,500 members in Jambi. These incentives aim to motivate plasma farmers to maintain and enhance the quality of their plantations, as well as uphold the sustainability certifications they have attained, such as the Roundtable on Sustainable Palm Oil (RSPO) certification.
Asian Agri’s Commitment to Sustainability
Pengarapen Gurusinga, the Regional Head of Asian Agri in Riau, underlined the importance of acknowledging the efforts of plasma farmers in upholding sustainability standards. He stressed that the objective of this appreciation program is to inspire farmers to sustain and improve the quality of their crops, ensuring the continuity of their RSPO certification.
Ramli Simarmata, the Regional Head of Asian Agri in Jambi, echoed these sentiments, emphasizing the significance of recognizing farmers who consistently adhere to internationally recognized sustainability standards through RSPO certification. He highlighted the impact of RSPO certification in supporting the sustainable palm oil industry in the international market, particularly in Europe.
Empowering Farmers through Partnerships
During the event, Sudiyono, the Chairman of KUD Jaya Makmur in Riau, shared his positive experience of partnering with Asian Agri since 1990. He emphasized the invaluable guidance and support provided by the company over the 35-year partnership, enabling farmers to cultivate palm oil plantations efficiently.
Similarly, Anton Suhartono, a second-generation plasma farmer with Asian Agri in Riau, expressed gratitude for the support and ease of access to resources provided by the company. He highlighted the benefits of the partnership, including streamlined administrative processes and sustainable plantation management practices, ultimately contributing to the farmers’ overall well-being and success.
Through initiatives like premium sharing and ongoing support, Asian Agri continues to demonstrate its commitment to fostering sustainable palm oil farming practices and empowering local communities for a more environmentally conscious and socially responsible future.
