In Indonesia, Wilmar has a total planted area of over 30,000 ha under government-originated plasma schemes. We support these smallholders in initial financing for development and land preparation, as well as through the provision of planting materials
such as seedlings, fertilisers and pest control. We also invest significantly to provide technical assistance, especially on good agricultural practices.
When the small crops reach maturity (which takes about three to four years), or when the plasma co-operatives are well established, the small plantation plots are handed over to smallholder co-operatives for self-management. While their oil palms are
maturing, we employ many of these farmers and provide them with training in essential agronomic skills so they are equipped to manage their own plots.
Under Indonesia regulation, plasma smallholders become independent smallholders once they have paid off their respective development credit agreement with the collaborating company. These ex-plasma smallholders (now independent smallholders) sometimes continue to have sales contracts agreements with Wilmar, and so these type of smallholders continue to be included under Wilmar’s RSPO certification. Nevertheless we continue to work closely with ex-plasma as part of our independent smallholder programme.
In Ghana we also have a similar programme modelled after the Indonesian plasma set up as described. However the Ghana scheme smallholder programme also focusses on additional cultivation of non-oil palm crops that is cassava, maize and plantain.
We are making good progress in achieving certification for our plasma smallholders with about 15% of plasma areas across Indonesia and Ghana RSPO-certified at end 2022.