Singapore, 28 July 2025 – Musim Mas, a leading player in the palm oil industry, is renewing its partnership with Nestlé, one of the world’s largest food and drink corporations, and AAK, a global supplier of fats and oils, for the fourth consecutive year. This innovative landscape initiative began in 2021 with Musim Mas pledging to launch and run a Smallholders Hub for five years, with the first two years of funding from Nestlé and AAK.
Smallholder Hubs are landscape-based initiatives by Musim Mas to train smallholders and Village Extension Officers (VEOs) on Good Agricultural Practices (GAP) and the principles of NDPE (No Deforestation, No Peat, No Exploitation). Through this training, the VEOs trained are expected to pass on the knowledge they gain to the smallholders they support, while smallholders are encouraged to apply what they learn directly to their own farms. The partnership initially focused on tackling deforestation outside plantation concessions in Aceh Subulussalam, Indonesia. It has since expanded to address the social and economic challenges faced by independent smallholders.
Since the program began in 2021, it has successfully trained 1,581 independent smallholders directly (exceeding the original target of 1,250), and 117 VEOs (exceeding the original target of 60). 20 top-performing VEOs received further advanced training on a curriculum to prepare for Indonesia Sustainable Palm Oil (ISPO) certification. They were also trained on home composting, helping reduce reliance on chemical fertilizers, while potentially improving soil health.
With this new extension of the partnership, the program’s impact will be expanded further. An additional 500 smallholders will be trained directly, and 20 more VEOs will receive the advance training.
This renewal marks a significant milestone, underscoring the partners’ shared vision and understanding that achieving lasting positive impacts in the landscape requires long-term commitment on the ground.
While the goal of halting deforestation remains central, the partnership also acknowledges the broader realities facing palm oil-producing communities. The renewed commitment includes efforts to address long-term sustainability through knowledge-sharing and skill-building. Musim Mas plans to introduce advanced training modules covering its women smallholders’ program, youth engagement and awareness outreach, and advanced financial literacy/business management.
Experience has shown that greater involvement of women in training programs leads to better outcomes. Musim Mas will continue to provide women with skills in nutrition and business management. The Group will also encourage male participation to foster supportive attitudes and advance women’s empowerment. This holistic approach ensures that women can contribute to overall development as equal participants.
As the smallholder population ages, engaging the next generation—often the children of current smallholders—is essential to the future of sustainable palm oil cultivation. Through outreach programs, the youths are introduced to modern agricultural methods, technologies, and NDPE-aligned sustainability practices and standards. The initiative aims to inspire innovation and long-term commitment among youths by helping them understand global market demands and responsible farming. To support this, Musim Mas plans to set up platforms for knowledge exchange and capacity-building tailored to youth, emphasizing sustainability as a pathway to future success.
As smallholders’ palms age, replanting becomes necessary, and financial management skills are increasingly crucial. The program will offer in-depth financial management training to help smallholders make informed decisions and strengthen their path toward self-sufficiency.
“Through this renewed partnership with Nestlé and AAK, we are proud to reaffirm our commitment to sustainable practices in the palm oil industry. As members of the Roundtable for Sustainable Palm Oil (RSPO) and of the Palm Oil Collaboration Group (POCG), we recognize the power of collective action in driving positive change for consumers and producers. Together, we are addressing environmental, social, and economic concerns and shaping the future of sustainable palm oil production in Aceh, one of the Group’s priority landscapes, ” said Olivier Tichit, Director of Communications and Sustainability, Musim Mas.
“The renewed partnership with Nestlé and Musim Mas to support smallholders and empower women in our supply chain ensures continued success. We continue to strengthen the smallholders’ capacities in implementing good agricultural practices and technical knowledge to ensure sustainable production.
The upcoming EU Deforestation Regulation (EUDR) is challenging for smallholders to comply with due to their lack of resources, knowledge, and capacity. We want to continue engaging with smallholders collectively to ensure an inclusive pathway for them,” said Caroline Westerik-Sikking, Sustainability Director of AAK.
About Musim Mas
Musim Mas Group is an integrated palm oil company operating in 13 countries. From plantations to mills, refineries, kernel-crushing plants, oleochemicals, and specialty fats plants, Musim Mas manufactures palm oil products and value-added derivatives. Musim Mas is one of the largest domestic producers and exporters in Indonesia. Inter-Continental Oils and Fats (ICOF), a member of Musim Mas Group, undertakes global marketing activities.
The Group is committed to sustainability and was the first company with significant operations in Indonesia to join the Roundtable on Sustainable Palm Oil (RSPO) in 2004. Committed early to emissions reductions, Musim Mas is a signatory to the Agriculture Sector Roadmap to 1.5 Degrees convened by the Tropical Forest Alliance. The Roadmap aims to halt commodity-linked deforestation in line with the 1.5-Degrees pathway while enhancing the livelihoods of smallholder farmers and supporting the sector’s transformation toward forest-positive land-use management. In January 2024, Musim Mas announced that it will strive to achieve net zero by 2050, aligning with climate science as per the Science Based Targets Initiative (SBTi). Musim Mas also manages the most extensive independent smallholder programs in Indonesia.
About AAK
Everything AAK does is about Making Better Happen™. We specialize in plant-based oils that are the value-adding ingredients in the products people love to consume. We make these products better tasting, healthier, and more sustainable. At the heart of AAK’s offering is Customer Co-Development, combining our desire to understand what better means for each customer with the unique flexibility of our production assets and deep knowledge across products and industries. 4,100 employees support our close collaboration with customers through 25 regional sales offices, 15 dedicated Customer Innovation Centers and support of more than 19 production facilities. Listed on Nasdaq Stockholm and with our headquarters in Malmö, Sweden, AAK has been Making Better Happen for more than 150 years. https://www.aak.com/about-AAK/
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