A new partnership is set to advance palm oil production in Indonesia to make it more inclusive, sustainable, and resilient. The Rokan Hulu Landscape and Livelihoods Initiative brings together global integrated palm oil group Musim Mas, sweet-packaged food company Ferrero, non-governmental organisations (NGOs) Preferred by Nature, Agriterra, and the Sustainable Agriculture Network (SAN). Funded by the Danish government’s Danida Green Business Partnerships (DGBP) programme, this initiative aims to enhance independent smallholder livelihoods, protect the environment, and promote sustainable palm oil production in line with global sustainability standards and regulatory frameworks, including the EU Deforestation Regulation (EUDR).
The Rokan Hulu Landscape and Livelihoods Initiative
This five-year project focuses on implementing scalable solutions for sustainable palm oil production. Its aim is to support 5,400 independent smallholders in adopting regenerative agricultural practices that improve farming conditions, reduce synthetic inputs, and strengthen climate resilience.
The Rokan Hulu Landscape and Livelihoods Initiative will also strengthen two farmer organisations and help 2,500 farmers achieve certification under the Roundtable on Sustainable Palm Oil (RSPO) and Indonesia Sustainable Palm Oil (ISPO) standards.
Additionally, it aims to create diversified income opportunities for 2,000 community members—60 percent of whom will be women—while implementing measures to safeguard biodiversity and mitigate deforestation risks. A key element of the initiative is establishing a multi-stakeholder jurisdictional alliance to promote ecosystem restoration and ensure alignment with sustainability standards.
Preferred by Nature, an international NGO headquartered in Denmark with extensive experience in sustainable agriculture and forestry projects, will lead project coordination, capacity building, and training in sustainable practices. Dutch agri-agency Stichting Agriterra will focus on strengthening farmer organisations, enabling financial sustainability, and fostering cooperative business models, while international NGO SAN will provide expertise in regenerative agriculture and deliver on-ground support through its Indonesian partners Kaleka and Setara Jambi.
Both Musim Mas and Ferrero have a shared interest in securing a sustainable and traceable palm oil supply chain that complies with regulatory standards and meets voluntary commitments.
Addressing Systemic Challenges in Palm Oil Supply Chains
This project aligns the shared objectives of Ferrero and Musim Mas with development goals by addressing systemic challenges within independent smallholder supply chains.
These challenges include low productivity, varying levels of familiarity with sustainable farming practices, and environmental degradation, such as declining soil health. Independent smallholders, who manage over 40 percent of Indonesia’s planted palm oil, often encounter barriers to meeting RSPO and ISPO standards, including resource constraints, uneven access to knowledge, and land tenure issues. This initiative seeks to tackle these barriers by equipping farmers with the necessary tools and training to adopt sustainable practices, achieve certifications, and improve market access.
At the landscape level, the project fosters a multi-stakeholder alliance involving corporate, governmental, and civil society actors to strengthen ecosystem protection. These efforts safeguard biodiversity and support alignment with global sustainability standards like the EUDR.
A Model for Sustainable Palm Oil Production
By combining private sector commitments with nonprofit expertise, the Rokan Hulu Landscape and Livelihoods Initiative sets a benchmark for sustainable palm oil production and creates a win-win scenario for all stakeholders. Farmers can benefit from increased productivity, improved market access, and diversified incomes. Meanwhile, partners like Ferrero and Musim Mas can secure a reliable, sustainable, and traceable palm oil supply chain.
This project also generates long-term economic benefits for rural communities, contributes to global climate goals, and positions the Rokan Hulu region as a leading example of sustainable palm oil production.
This transformative initiative sets the stage for a more sustainable and inclusive palm oil industry. By addressing systemic challenges and fostering collaboration, the project paves the way for a resilient and environmentally responsible supply chain that benefits all stakeholders.
Mr Olivier Tichit, Director of Communications and Sustainability at Musim Mas, said: “Empowering smallholders through training and support is key to building a resilient and sustainable palm oil supply chain. Musim Mas takes a landscape-based approach to sustainability. Across the Smallholder Hubs we operate, we work with governments, suppliers, smallholders, NGOs, and other players in the landscape to achieve sustainability transformation. This project will enable us to contribute in a new dimension with our new partners.”
Mr Nicola Somenzi, Head of Responsible Sourcing at Ferrero, said: “We aim to create a thriving supply chain which benefits farmers’ livelihoods and communities, protecting people and nature. Beyond sourcing RSPO segregated palm oil for our products, our active participation in initiatives like this strengthens the foundation for a resilient and environmentally responsible supply chain that creates long-term value for all.”
Mr Jakob Ryding, Senior Director of Projects at Preferred by Nature, said: “At Preferred by Nature, we believe that sustainable palm oil production is only possible when smallholders are equipped with the right knowledge, resources and market access. This project demonstrates how collaboration between businesses and NGOs can address systemic challenges, empower farmers, and protect vital ecosystems. We are delighted to be part of this initiative.”
Mr Jose Joaquín Campos, Executive Director at SAN, said: “By integrating regenerative agriculture and nature-based solutions, this initiative demonstrates how sustainable farming can simultaneously revive ecosystems and enhance farmer livelihoods.”
Mr Marco Schouten, CEO of Stichting Agriterra, said: “Strengthening farmer organisations is at the heart of what we do. This project provides the tools needed to empower farmer organisations and their members, enabling them to cooperate to achieve financial sustainability and seize new market opportunities.”
