The development of the agri business in Indonesia is still being challenged by the poor welfare of smallholders, even when these smallholders are the front liners of the industry who contribute to...
Asian Agri, one of RGE‘s group of companies, has long been committed to improving the livelihood of its partnered Indonesian smallholder farmers. Since 2011, the company has also worked to assist independent smallholders who are not part of its large-scale plasma scheme. In 2015, Asian Agri renewed its dedication to furthering the interests of all palm oil smallholders through its capacity-building programs. The company’s leadership believes that doing so has the potential to not only lift more of Indonesia’s working families out of poverty, but also improve the economic competitiveness of the country as a whole. Asian Agri operates on the three-fold principle of doing good for the company, the country, and the community in equal measure. This is the “3C” philosophy espoused by Sukanto Tanoto, founder and chairman of RGE. In a February 2015 press event “Asian Agri Committed to Developing Smallholders”, Freddy Widjaya, general manager of Asian Agri, noted that the company provides educational resources on sustainability and best agricultural practices to independent smallholders. This assistance helps the farmers increase their own incomes and provides an economic boost to rural communities. Bayu Krishnamurti, Agricultural Observer from Bogor Institute of Agriculture added that Asian Agri’s business philosophy is in keeping with current industry paradigm on using sustainable practices throughout the entire palm oil production chain. Asian Agri currently maintains partnerships in a plasma scheme model with close to 30,000 smallholders farming approximately 60,000 hectares of palm oil plantations in Sumatra’s Jambi and Riau Provinces. The lives of these families have significantly improved in the partnership. More can afford better housing and attain educational opportunities for themselves and their children. Asian Agri intends to cultivate similar mutually beneficial relationships with 60,000 independent smallholders by the year 2020.
About Asian Agri
Asian Agri is an Indonesian-based, world-class palm oil company that manages the archipelago’s abundant natural resources. It was established in 1979. Asian Agri was one of the pioneers in the Indonesian government’s trans-migration scheme in Riau and Jambi. The scheme involved the migration of Indonesians from densely populated areas of Indonesia, such as Java, to less populous areas of the country with the objective of reducing poverty. Under the scheme, migrants were given land. In partnership with companies like Asian Agri which provided training in palm oil cultivation, seedlings, financing and community services, these migrants became successful smallholders, supplying their palm oil produce to Asian Agri at fair trade prices in line with government policy. Asian Agri is part of a group of companies managed by RGE, which is founded by Sukanto Tanoto, also its chairman. More info: