To celebrate National Smallholders’ Day 2024, we share the path taken by Novie Zulhi and his Jambi-based cooperative, Kotani Mandiri Bersama, to achieve global RSPO certification, marking a critical step toward sustainable palm oil production for smallholders in Indonesia.
Novie Zulhi and SMILE
Novie Zulhi began in the farming business since the 2004. First assisting his parents, and upon their passing, Novie now tends to an oil palm smallholder operation in Jambi, located on the east coast of Sumatra island.
Concerned about subpar harvests in recent years, Novie knew something had to change. “Each time we hoped for a better harvest. I wanted to provide certainty and stability for my family, and that [goal] was starting to feel distant,” he says. This was when he joined the SMILE programme in 2022.
Launched in 2020 by Asian Agri, Apical and the KAO Corporation, SMILE (or “Smallholder Inclusion for Better Livelihood & Empowerment”) works to empower smallholders by improving yields, facilitating sustainability certification, and securing premium prices for certified palm oil.
“The SMILE program helped our smallholder cooperative, Kotani Mandiri Bersama, manage our plantations using Good Agricultural Practices (GAP), which gradually improved our yields,” says Novie.
“Our farmers’ group showed particular enthusiasm for sustainable methods within the GAP standard. From land fire prevention to hazardous waste management and administrative tasks such as harvest record-keeping, the programme has sparked great interest among our members.”
These practices not only improved transparency but also built trust with buyers, significantly impacting their market reach. “These standards were something we hadn’t managed, or even understood before. New methods have made a significant difference in how we operate,” says Novie.
Successful improvement and results like Novie and his cooperative are an important part of SMILE and the partnership with KAO, a multinational chemical and cosmetics company who have partnered with Asian Agri and Apical, seeking to maintain a sustainable supply chain for their products.
“SMILE is designed to improve the livelihood of smallholders and promote sustainable agriculture,” explained Hendra Hosea, Sustainability Manager at Apical. “Beyond fair prices for certified palm oil, we aim to create positive change.”
Achieving RSPO Certification
One of the more significant changes because of the SMILE programme was obtaining RSPO certification for Novie and the cooperative. The Zurich-based Roundtable on Sustainable Palm Oil (RSPO) is a global organisation that develops and implement standards for sustainable palm oil.
With the assistance of the SMILE program team, Novie and his group conducted an internal audit to facilitate the certification process. In December 2022, Kotani Mandiri Bersama were then subjected to an external audit by the RSPO. “The requirements were extensive, ranging from the group having a legal entity, strengthening human resources in each village according to their respective fields, to ensuring that GAP was implemented effectively, such as eliminating the use of chemical pesticides and plastic materials.”
After carrying out the requirements in 2023, “achieving RSPO certification is a proud moment for us. This certification recognises the sustainability of our plantation internationally and adds value to our products within the palm oil industry,” says Novie.
Since certification, Novie shared that the cooperative saw a 30% increase in yields, significantly improving their respective financial standing. “From 200, we now have over 500 members in three villages, cultivating over 700 hectares of land.”
He also noticed positive changes within his cooperative. “Our cooperative now adheres to sustainable principles in managing our plantations. The rules are quite strict, to be honest, be we are used to it. It is top of mind now to make sure everything we do aligns with sustainability standard by RSPO.”
The cooperative has received approximately IDR 500 million in RSPO credit. They decided to allocate their funding on fertiliser supply. “We learned about the better way to fertilise our plantations during the two-years training. We cut quite a lot of maintenance expenses, now that we know better,” said Novie.
A New Future
Novie’s daily routine now involves managing various aspects of the cooperative’s operations. “My day starts early with checking the plantation’s condition and ensuring that all workers are following the sustainable practices we’ve adopted. I oversee the application of fertilizers, monitor pest management, and ensure that our water resources are used efficiently. Additionally, I handle the administrative tasks related to maintaining our RSPO certification and coordinate with our partners for ongoing training and support.”
In November 2024, Novie is set to travel to Thailand to receive an appreciation award at RT2024, an annual event hosted by RSPO. Novie reflects: “I am happy to receive this award because it signifies more success in the future. It shows that our efforts are being recognised and encouraged us to continue doing the good things. “Initially, I just wanted to achieve RSPO certification, but being recognised in this way means a lot more. It highlights the potential for smallholders like us to make a meaningful impact.”
