Aim

The Smallholder Hub initiative aims to ensure that the palm oil production from independent smallholders adhere to the sustainability principles acknowledged by national and international palm oil market. 

Where

Riau Province

Why

Indonesia's dependency on palm oil market forces local palm oil businesses to comply with international regulations on sustainable plantations, for instance the NDPE (No Deforestation, No Peat, No Exploitation) principle or the European Union Deforestation-free Regulation (EUDR). These policies are, not only impacting the big companies, but also smallholder farmers as they are part of the global supply chain. Therefore, ensuring a deforestation-free supply chain requires continuous collective action by the government, upstream-to-downstream companies, and civil society organizations.

One of the key highlights in addressing this issue is that the marginalization of smallholder farmers. Oftentimes, smallholders are not included in decision-making process, due to their relatively weaker bargaining position. This is unfortunate because they actually contribute massively to palm oil industry, owning approximately 40 percent of total palm oil plantations. 

How

Starting in 2016, WRI Indonesia has launched the initiative for independent smallholders empowerment program in Rokan Hulu and Siak district under the Roundtable Sustainable Palm Oil (RSPO) certification scheme with a number of 756 farmers managing 1,564 hectares in collaboration with Unilever, PT Perkebunan Nusantara, and local governments.

In 2022, the coverage area of this initiative was expanded to 4 districts of Riau Province with a total of 15,000 participants who are currently working hand in hand with the Smallholder Hub Program initiated by Unilever to be named as RSPO-certified member, all in 2027. Specifically, WRI Indonesia supports the Smallholder Hub initiative at 4 regencies in Riau Province, which are Kampar, Rokan Hulu, Siak, and Pelalawan Regencies.

WRI Indonesia as the partner of Unilever Asia, along with stakeholders in the palm oil supply chain has identified the existence of independent palm oil farmers sprawling across Riau Province. This initiative aims to give independent smallholders trainings to understand the principles and criteria of sustainable palm oil, forming legal farming associations, agricultural capacity development on High Carbon Stock (HCS) and High Conservation Values (HCV), mitigating social to environmental impact, supporting business development, improving financial literacy, and understanding gender equality. 

Partners

Unilever Asia Private Limited, Roundtable Sustainable Palm Oil (RSPO), and Local Government in Riau Province, Kampar District, Rokan Hulu District, Siak District, and Pelalawan District.