New Initiative Targets Sustainable Palm Oil Transformation in Indonesia’s Rokan Hulu
A new multi-stakeholder partnership is set to transform palm oil production in Indonesia, with a strong focus on sustainability, inclusivity, and resilience. The Rokan Hulu Landscape and Livelihoods Initiative brings together global palm oil producer Musim Mas, confectionery group Ferrero, and NGOs Preferred by Nature, Agriterra, and the Sustainable Agriculture Network (SAN), with support from Denmark’s Danida Green Business Partnerships (DGBP) programme.
The five-year project aims to support 5,400 independent smallholders in adopting regenerative agricultural practices and improving climate resilience, while promoting compliance with international sustainability frameworks including the EU Deforestation Regulation (EUDR).
Empowering Smallholders and Strengthening Supply Chains
The initiative will help 2,500 farmers achieve RSPO and ISPO certification and support two farmer organisations in building financial sustainability. A further 2,000 community members—60% of them women—will benefit from diversified income opportunities.
With over 40% of Indonesia’s palm oil plantations managed by independent smallholders, the project addresses key barriers to sustainable production, such as limited technical knowledge, low productivity, and challenges in meeting certification standards.
Preferred by Nature will lead coordination, capacity building and training, while Agriterra will focus on cooperative development. SAN, through Indonesian partners Kaleka and Setara Jambi, will deliver support on regenerative practices and biodiversity conservation.
Landscape-Level Collaboration and Ecosystem Protection
The initiative includes the creation of a jurisdictional alliance to promote ecosystem restoration and reduce deforestation. The integrated approach combines private sector responsibility with NGO expertise to align local action with global standards.
“This project enables us to contribute in a new dimension with our partners,” said Olivier Tichit, Director of Communications and Sustainability at Musim Mas. “Empowering smallholders is key to a resilient palm oil supply chain.”
Ferrero’s Head of Responsible Sourcing, Nicola Somenzi, added: “Beyond sourcing RSPO segregated palm oil, our participation in initiatives like this strengthens the foundation for a responsible and inclusive supply chain.”
A Model for the Industry
By tackling systemic supply chain challenges and enabling sustainable farming practices, the Rokan Hulu initiative offers a blueprint for responsible palm oil production. It promises long-term gains for farmers, rural communities, and buyers, while contributing to climate and biodiversity goals.
“This is how sustainable farming can revive ecosystems and boost farmer livelihoods,” said SAN’s Executive Director Jose Joaquín Campos.
The Rokan Hulu Landscape and Livelihoods Initiative sets a benchmark for industry collaboration and positions the region as a future model for sustainable palm oil.