Independent smallholders are self financed and often, their limited expertise and resources to produce palm oil effectively and sustainably impact the sector as a whole. The smallholders make up 40% of the palm oil production in Indonesia, it is imperative that we help facilitate their inclusion into the global sustainable supply chain.
To address these challenges, a sustainability initiative was launched in 2020 to help independent smallholders in Indonesia. The ‘SMallholder Inclusion for better Livelihood & Empowerment Programme’ (SMILE) was established by Apical Group, KAO Corporation and Asian Agri.
The SMILE programme has gathered a team of knowledge practitioners in agronomy, and plantation management to upskill 5,000 independent smallholders approximately 18,000 hectares of plantations in the provinces of North Sumatra, Riau and Jambi.
We ensure that all activities under the SMILE programme are implemented in accordance to the RSPO framework and are aligned to the UNSDGs. Empower initiatives that focus on the communities is a key activity supporting this commitment.
Apical Group, KAO Corporation and Asian Agri regularly engage with community heads, non-profit organisations (NGOs) to provide high-quality training and identify any areas of improvement for more meaningful engagements.
Objective
- Lower smallholders’ costs by at least 30%.
- Increase yield through access to knowledge, training, and resources.
- Sell sustainable palm oil produced by participating smallholders at a premium.
- Improve smallholders’ income and long-term sustainability.
Livelihood
- Increased productivity by applying sustainable and good agricultural
practice. - Reduced herbicide usage.
- Increased income through sales premium.
Environment
Complying to RSPO Best Management Practices, and reduce pressure on deforestation
CSPO Uptake
Guaranteed off-taking by KAO, CSPO premium to ISH
The progress for 2025 is as follows:
- 4,698 independent smallholders engaged, with 2,834 farmers certified under RSPO across 6,574 hectares, securing their access to global sustainable markets and premium pricing (1,461 independent smallholders received RSPO certification in 2025).
- 4,342 smallholders were equipped with comprehensive Good Agricultural Practices (GAP) training, enabling them to enhance productivity on existing land.
- 4,241 smallholders received crucial training on RSPO Principles and Criteria (P&C), while an identical number were educated on the critical concepts of High Conservation Value (HCV) and High Carbon Stock (HCS), ensuring their long-term commitment to sustainable land management and biodiversity conservation.
