On November 22, 2023, the Earthqualizer Foundation hosted a national discussion forum entitled "Building Collaboration to Accelerate the Legalization of Smallholder Palm Oil Plantations" at the Grand Sahid Jaya Hotel in Jakarta. The attendees of this forum included representatives from central and regional governments, as well as key stakeholders in the palm oil industry, including companies and palm oil farmers from Aceh Singkil, Kubu Raya, Sekadau, Sintang, Engkersik, and other regions. The agenda of this discussion was to discuss the current and future challenges of palm oil farmers in Indonesia, as well as the strategic plan to be developed to address these challenges.
The discussion served as a pivotal platform for sharing insights and addressing field-level obstacles in achieving compliance with smallholder legality standards. Anticipated outcomes of this national discourse include a heightened awareness and engagement among national, provincial, and district governments. It is expected that these entities will play a more active role and foster greater synergy in endeavors to expedite the legalization of smallholder plantations. Additionally, the insights gained from this forum are envisioned to cultivate collaborative opportunities among stakeholders within the palm oil industry, such as companies, factories, and buyers. This collaboration is intended to actively support the acceleration of the legalization process for smallholder plantation lands, recognizing them as integral components of their supply chain.
The speakers who delivered their insights during the forum included Swisto Uwin, the Person in Charge of the Palm Oil Smallholder Program at Earthqualizer Foundation; Arif Setya Budi, the Head of the Secretariat of the Regional Implementation Team of Sintang District; Zulkifli, the Head of the Plantation Office of Aceh Singkil District; and M. Wahyu Dicky, serving as the Assistant Deputy for Spatial Planning and Land at the Coordinating Ministry for Economic Affairs. Additionally, representatives from the Plantation Agencies of Sambas, Kubu Raya, and Sekadau districts provided valuable perspectives on the current regional conditions.
In his comprehensive presentation, Swisto Uwin highlighted the existing challenges confronting palm oil smallholders, particularly the existence of international policies such as NDPE and EUDR. These policies pose a potential threat to the inclusion of palm oil smallholders in the palm oil supply chain, as many farmers may struggle to meet the stringent requirements for the legality of their plantations. Citing data from the Earthqualizer Foundation, it was revealed that out of the 7.9 million hectares of indicative smallholder land, 4.1 million lack legal status, with 3.3 million situated in forest areas, and a mere 22,096 hectares holding ISPO certification. To address this issue, the Earthqualizer Foundation is actively engaged in a three-phase approach to expedite the legalization process, which are preparation, implementation, and release phase. During the preparation phase, Earthqualizer undertakes comprehensive research and investigations to construct a robust spatial database for analysis, decision- and policy-making, and building agreements with decision-makers in the private sector, government, and farmers. In the implementation phase, Earthqualizer facilitates harmonization and execution with broad participation from civil society groups and farmers. Finally, in the release phase, the foundation oversees the monitoring and evaluation of legalized palm oil smallholder plantations that have undergone the legalization process.
The Regional Action Plan for Sustainable Palm Oil (RAD-KSB) serves as a mandate that forms the basis for improving sustainable palm oil governance by involving government commitment and coordination with relevant parties. Zulkifli, the Head of the Aceh Singkil District Plantation Office, communicated that the district is presently in the process of implementing RAD-KSB. Arif Setya Budi, Head of the Secretariat of the Sintang District Implementation Team, elucidated the challenges faced by the Sintang district government during the RAD-KSB implementation, such as the lack of resources in the process of overseeing and implementing RAD-KSB, low compliance with regulations, policies, and agreements that have been prepared, expensive data collection, mapping, and certification costs, and not maximizing the synchronization of ATR/BPN program directions related to land legality to farmers, which must be of concern to the central government.
On the occasion, Zulkifli as Head of the Aceh Singkil District Plantation Agency provided a comprehensive overview of the pertinent data about the district. The total expanse of palm oil plantations in Aceh Singkil was reported as 77,260.12 hectares, with 12 hectares managed by 14 companies, and 31,352 hectares designated as community palm oil plantations. From this condition, the challenges identified in Aceh Singkil include the absence of a local government budget, the imperative to legalize 5,000 hectares within forested areas, and the absence of a comprehensive map detailing community palm oil plantations. Furthermore, farmers' knowledge of sustainable palm oil cultivation practices remains limited, compounded by the imperative to adhere to ISPO and RSPO certifications, along with compliance with global market policies such as EUDR and NDPE. During the discussion, representatives from the District Plantation Offices of Sambas, Kubu Raya, and Sekadau also highlighted challenges encountered, including a shortage of human resources, a lack of information dissemination and socialization, and a deficiency in facilitative entities to support the legalization processes for palm oil farmers.
M. Wahyu Dicky as Assistant Deputy for Spatial Planning and Land of the Coordinating Ministry for Economic Affairs on his occasion delivered a message on behalf of the Coordinating Minister for Economic Affairs. The communication underscored the imperative for an active and collaborative role from Regional Governments in accelerating the submission of proposals for the Priority Program for Agrarian Reform (PPTPKH), aligning with the revised Indicative PPTPKH Map (HPK-TP) Phase II, encompassing settlements, gardens, public facilities, and social facilities as sources for Terms of Reference (TOR). Furthermore, emphasis was placed on the significance of elevating the Agrarian Reform program to a regional priority, integrating it into the Regional Development Work Plan, including the allocation of the Regional Budget (APBD) to support the implementation of Agrarian Reform, as well as emphasizing the collaboration of the Central Government and Regional Governments in the framework of inventorying and verification of Agrarian Conflict locations to be followed up with recommendations for resolution.
Palm oil industry representatives also shared insights into their engagement with smallholders, outlining initiatives such as farmer capacity-building, product diversification, and the facilitation of smallholder legalization. Within the context of this national discussion, both government officials and palm oil industry representatives expressed concurrence with the Earthqualizer Foundation's initiatives, regarding the inclusiveness of smallholders in the palm oil supply chain and were willing to fully support all programs brought in the effort to legalize the land of palm oil farmers.
Moreover, government authorities expressed their readiness to actively promote the acceleration of land legalization for palm oil smallholders. Additionally, there was consensus on the need for heightened coordination at the regional level, aiming to facilitate the effective implementation of the National Action Plan for Sustainable Palm Oil down to the grassroots level.