We have an operational presence in North Sumatra, where Musim Mas’ mid and downstream operations are mostly located. The supply base in North Sumatra is large, with one of our largest supply volumes coming from North Sumatra.
Our smallholder program in North Sumatra was the first to successfully obtain RSPO certification. 50% of oil palms in North Sumatra are due for replanting within the next ten years. Hence empowerment of smallholders in this province would be of value.
Following our Landscape Strategy for Aceh published in 2020, we have applied the lessons learned to guide our next steps. Building on this progress, Musim Mas expanded its landscape approach in September 2024 to include Aceh, Riau, North Sumatra, South Sumatra, Central Kalimantan, and West Kalimantan under Musim Mas’ Priority Landscapes Strategy 2024
The landscape strategy comprises three objectives: Engagement, Assurance, and Monitoring and Response. This will fulfill a key component of the Group’s updated NDPE Roadmap to 2025, which commits to developing landscape strategies for all the Group’s remaining key sourcing regions.
Firstly, the Engagement objective entails outreach to independent smallholders and mills to convey NDPE requirements and the possible consequences of non-compliance.
The Assurance objective has components to ensure that the mills supplying crude palm oil and palm kernels to Musim Mas are NDPE compliant.
Finally, the Monitoring and Response objective contains proactive elements to detect and verify deforestation at the landscape or jurisdictional level.
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Advancing regenerative agriculture amongst independent palm oil smallholders in North Sumatra
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Our smallholder program in PT. Siringo Ringo, North Sumatra, was our first site that was granted the funding by The Indonesia Oil Palm Plantations Fund Management Agency (BPDPKS), which is a government-allocated fund for replanting for independent smallholders. Musim Mas successfully helped to facilitate the process for smallholders to get access to funding.
