![\"\"](\"https:\/\/i0.wp.com\/gapki.id\/en\/allies-en\/uploads\/2021\/03\/strengthen_partnership_palmoil_nestle.com_.jpg?resize=800%2C511&ssl=1\")
<\/a><\/p>\nSynergistic partnership between the corporations and smallholders can be strengthened through the improvement of institutions of smallholders by applying the principles of transparency and good governance.<\/p>\n
The Indonesian Palm Oil Association (Gapki) Deputy Chairman in charge of organization affairs, Kacuk Sumarto said that the palm oil supply chain is inseparable from the relationship of palm oil companies and smallholders. If there is any problem in the supply chain then it will certainly affect the sustainability of the palm oil industry. \u201cThe partnership between smallholders and palm oil companies should be always solid and effective. There shouldn\u2019t be any misunderstandings between them, as it could endanger the palm oil industry,” he said.<\/p>\n
The government has stipulated such partnership through the agriculture ministry regulation (Permentan) No.1\/2018 on guidelines to determine the price of fresh fruit bunches (FFB) produced by smallholders every month based on provincial regulations in respective provinces. The regulation applies for smallholders under the plasma scheme or those independent from any scheme. The smallholders are required to partner with palm oil mills.<\/p>\n
The regulation stipulates that partnerships between the smallholders and palm oil companies should be based on the principles of mutual benefits, mutual needs, and sustainability. Usually, the conflicts between the palm oil companies and smallholders are triggered from the calculations of FFB prices. To avoid the conflicts, both sides should be transparent. And they need to always realize that their business has certain characteristics, which include the important of ensuring the FFB gets quick processing at the palm oil mills to ensure getting better quality of crude palm oil (CPO) and palm kernel oil (PKO).<\/p>\n
By considering all of the characteristics of the palm oil businesses, the government has issued regulations, which include a stipulation on the establishment of an institutionalized partnership under what is called the nucleus estate and smallholders project (PIR), which then becomes a reference for establishing various schemes of partnerships between the companies and smallholders in line with their needs.<\/p>\n
Historically, the oil palm partnership schemes are categorized into three phases, namely initiation, implementation, and development or expansion of their partnership schemes.<\/p>\n
This year, Gapki focuses on strengthening the partnerships and it will maximize the utilization of smallholders\u2019 potential and reduce misunderstandings regarding the calculation of FFB prices. The Covid-19 vaccination in 2021 is expected to revive the national economy, which will then revive the national palm oil industry. \u201cFor such development, the partnership is needed. Strengthening the partnership is the priority program of Gapki this year. We will keep monitoring its progress on ground,” he told the participants of virtual Ngobrol Bareng Gapki recently.<\/p>\n
The Sustainable and Strategic Plantations Development Forum Chairman Achmad Mangga Barani said during the virtual discussion that the partnerships between palm oil companies and smallholders should be based on equality, harmony, and cooperation to improve partnerships.<\/p>\n
“There have been many partnerships already implemented in the palm oil industry. They include various types of PIR, sales and purchase of FFB, cooperation to develop smallholding plantations, and replanting of smallholding plantations. Realizing the strong partnership between the companies and smallholders needs the role of the central government and regional governments, and the business competition supervision commission (KPPU) to supervise the business competition in the palm oil industry,\u201d he concluded. (*)<\/p>\n
Source:\u00a0Investor Daily<\/p>\n","protected":false},"excerpt":{"rendered":"
JAKARTA \u2013 Palm oil companies and smallholders should further strengthen their partnerships, which are the key factor in maintaining palm oil supply chain and increasing sustainability and competitiveness at the global market.<\/p>\n","protected":false},"author":1,"featured_media":19872,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[3708,3709],"tags":[],"class_list":["post-26034","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-publication","category-recent-news"],"yoast_head":"\n
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Gapki Chairman Joko Supriyono said that the palm oil supply chain depends on the partnership of smallholders and companies. The\u2026","rel":"","context":"In "Info & Activity"","block_context":{"text":"Info & Activity","link":"https:\/\/gapki.id\/en\/news\/category\/info-activity\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/09\/indonesian_eyes_palmoil_smallholder.jpg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/09\/indonesian_eyes_palmoil_smallholder.jpg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/09\/indonesian_eyes_palmoil_smallholder.jpg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/09\/indonesian_eyes_palmoil_smallholder.jpg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/09\/indonesian_eyes_palmoil_smallholder.jpg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":19378,"url":"https:\/\/gapki.id\/en\/news\/2020\/11\/15\/gapki-sustainability-in-all-supply-chains-ensures-stability\/","url_meta":{"origin":26034,"position":1},"title":"GAPKI: Sustainability In All Supply Chains Ensures Stability","author":"admin","date":"November 15, 2020","format":false,"excerpt":"JAKARTA \u2013 The sustainability principles should be continually implemented all across the palm oil supply chains, from the big oil palm players up to the smallholders. The Indonesian Palm Oil Association (GAPKI) Chairman Joko Supriyono said during a virtual discussion recently in Jakarta that the sustainability is a market driven\u2026","rel":"","context":"In "Info & Activity"","block_context":{"text":"Info & Activity","link":"https:\/\/gapki.id\/en\/news\/category\/info-activity\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/03\/joko_supriyono_corona-2.jpg?fit=850%2C483&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/03\/joko_supriyono_corona-2.jpg?fit=850%2C483&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/03\/joko_supriyono_corona-2.jpg?fit=850%2C483&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/03\/joko_supriyono_corona-2.jpg?fit=850%2C483&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":32051,"url":"https:\/\/gapki.id\/en\/news\/2026\/09\/23\/wwf-indonesia-and-cpopc-strengthen-ispo-certification-for-global-markets\/","url_meta":{"origin":26034,"position":2},"title":"WWF-Indonesia and CPOPC Strengthen ISPO Certification for Global Markets","author":"admin","date":"September 23, 2026","format":false,"excerpt":"JAKARTA \u2013 WWF-Indonesia and the Council of Palm Oil Producing Countries (CPOPC) have signed a Memorandum of Understanding (MoU) to strengthen sustainability certification systems for plantation commodities, particularly Indonesian Sustainable Palm Oil (ISPO). The partnership is aimed at enhancing the credibility and global acceptance of ISPO certification, while strengthening supply\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/09\/cpopc_wwf_ceremony_gapki.id___.jpg?fit=995%2C616&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/09\/cpopc_wwf_ceremony_gapki.id___.jpg?fit=995%2C616&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/09\/cpopc_wwf_ceremony_gapki.id___.jpg?fit=995%2C616&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/09\/cpopc_wwf_ceremony_gapki.id___.jpg?fit=995%2C616&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":29830,"url":"https:\/\/gapki.id\/en\/news\/2025\/06\/16\/palm-smallholders-big-contribution-but-often-forgotten\/","url_meta":{"origin":26034,"position":3},"title":"Palm Smallholders: Big Contribution But Often Forgotten","author":"admin","date":"June 16, 2025","format":false,"excerpt":"JAKARTA - Palm oil, which is scientifically known as Elaeis guineensis, has become one of the main contributors to Indonesian economy. It is not just important in the plantation sector, but it has brought big impacts to the national economy of Indonesia as a whole. Within the real sector, the\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/06\/palmoil_sawit_smallholder_petani_AI.jpg?fit=601%2C357&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/06\/palmoil_sawit_smallholder_petani_AI.jpg?fit=601%2C357&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/06\/palmoil_sawit_smallholder_petani_AI.jpg?fit=601%2C357&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":31844,"url":"https:\/\/gapki.id\/en\/news\/2026\/08\/21\/palm-smallholders-opportunities-challenges-and-differences\/","url_meta":{"origin":26034,"position":4},"title":"Palm Smallholders: Opportunities, Challenges, and Differences","author":"admin","date":"August 21, 2026","format":false,"excerpt":"Indonesia\u2019s palm oil industries are not only supported by big companies, but also by millions of palm oil smallholders. In practice, there are two main types of palm smallholders: plasma and independent ones. Both have an important role in the national supply chain of palm oil, but with different characteristics,\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":26585,"url":"https:\/\/gapki.id\/en\/news\/2023\/10\/13\/opinion-eu-ri-need-partnership-to-help-palm-smallholders\/","url_meta":{"origin":26034,"position":5},"title":"OPINION: EU, RI Need Partnership To Help Palm Smallholders","author":"admin","date":"October 13, 2023","format":false,"excerpt":"The European Union\u2019s newest deforestation regulation may spell trouble for smallholders in palm oil producing countries. 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