Smallholders are crucial stakeholders in our commitment to a traceable and sustainable supply chain. In Indonesia, smallholder plantations represent at least 40% of all palm oil cultivation, they generate exports and create jobs. The Indonesian Government plans to make ISPO mandatory for smallholder farmers; we aim to support and assist our smallholders achieve the ISPO certification once it is mandated. In 2019. We assisted ten KUDs in the first and second stage ISPO audits. One of the ten KUDs has finished the audit process and is awaiting the ISPO certification issuance in 2020.
Yield uplift is key to alleviating negative sustainability impacts. Plasma and other smallholders are expected to meet the same quality criteria as nucleus suppliers of FFB, so plasma plantations are closely aligned with our agricultural practices and management system.
If a grower is operating inefficiently it will erode their livelihood and create pressure to clear forests for agriculture. Our Smallholder Programme aims to minimise this risk. As plasma smallholders can be vulnerable to volatile market conditions, IndoAgri offers them free agronomic advice and training and makes essential resources such as seed stocks and fertilisers affordable to them using through discounts. We also help them to build the capacity of cooperatives on the journey to achieving ISPO certification. Our engagement with smallholders also involve training and workshop activities on sustainable palm oil.
Our Policy commits us to uphold and to deliver the principle of Free, Prior and Informed Consent (FPIC), particularly with respect to land acquisition involving local villages. We work to engage with communities and governments to establish land tenure and rights, likely impacts on communities using open negotiation processes and documented agreements. Before a new development takes place, a Social Impact Assessment is carried out to understand the baseline conditions and likely social impacts of development.