Asian Agri’s Rp5.5 Billion Palm Oil Premiums Empower 30,000 Smallholders
Asian Agri has distributed approximately Rp5.5 billion in premiums to 76 Village Unit Cooperatives (KUDs) through its 2024 Certified Palm Oil Premium Sharing Programme. The funds aim to support over 30,000 smallholders in Riau and Jambi by improving infrastructure and productivity. An appreciation event for the scheme’s participants took place at Hotel Santika in Bukittinggi, West Sumatra.
The premium-sharing initiative stems from Asian Agri’s sustainability efforts, which focus on long-term economic, social, and environmental benefits for smallholders. By reinvesting the funds, cooperatives like Makmur Rezeki KUD have upgraded fertiliser and herbicide storage, repaired roads, and provided personal protective equipment. They have also installed owl nesting boxes to promote natural pest control.
Karya Bersama KUD plans to allocate its share of the premiums toward maintaining and improving roads that connect palm oil mills. These investments help smallholders meet RSPO certification standards, expanding their market access—particularly in Europe. Asian Agri, part of the RGE group, emphasises that the programme strengthens smallholders’ commitment to sustainable farming. However, no collaborations between the company and the KUDs are scheduled for 2026 to maximise the use of these funds.
The premium-sharing programme has provided direct financial support to thousands of smallholders. Reinvestments in infrastructure, equipment, and sustainable practices aim to boost productivity and market opportunities. The initiative reflects Asian Agri’s broader goal of ensuring long-term resilience for farming communities.
