A new partnership aims to boost palm oil production in Indonesia to make it more inclusive, sustainable, and resilient. The Rokan Hulu Landscape and Livelihoods Initiative brings together the global integrated palm oil group Musim Mas, the packaged sweet food company Ferrero, the non-governmental organizations (NGOs) Preferred by Nature, Agriterra, and the Sustainable Agriculture Network (SAN). Funded by the Danish government's Danida Green Business Partnerships (DGBP) program, this initiative aims to improve the livelihoods of independent smallholder farmers, protect the environment, and promote sustainable palm oil production in accordance with sustainability standards and global regulatory frameworks, including the EU Deforestation Regulation (EUDR).

This five-year project focuses on implementing scalable solutions for sustainable palm oil production. Its goal is to support 5,400 independent smallholder farmers in adopting regenerative agricultural practices that improve growing conditions, reduce synthetic inputs, and strengthen climate resilience.

The Rokan Hulu Landscape and Livelihoods Initiative will also strengthen two farmer organizations and help 2,500 farmers achieve certification according to the Roundtable on Sustainable Palm Oil (RSPO) and Indonesian Sustainable Palm Oil (ISPO) standards.

In addition, it aims to create diversified income opportunities for 2,000 community members—60% of whom will be women—while implementing measures to safeguard biodiversity and mitigate deforestation risks. A key element of the initiative is the establishment of a jurisdictional multi-stakeholder alliance to promote ecosystem restoration and ensure compliance with sustainability standards.

Preferred by Nature, a Denmark-based international NGO with extensive experience in sustainable agriculture and forestry projects, will lead project coordination, capacity building, and training in sustainable practices. The Dutch agricultural agency Stichting Agriterra will focus on strengthening farmer organizations, enabling financial sustainability, and fostering cooperative business models, while the international NGO SAN will contribute its expertise in regenerative agriculture and provide on-the-ground support through its Indonesian partners Kaleka and Setara Jambi.

Both Musim Mas and Ferrero share an interest in ensuring a sustainable and traceable palm oil supply chain that meets regulatory standards and voluntary commitments.

Addressing systemic challenges in palm oil supply chains

This project aligns the shared goals of Ferrero and Musim Mas with development objectives by addressing systemic challenges within the supply chains of independent smallholder farmers.

These challenges include low productivity, varying levels of familiarity with sustainable agricultural practices, and environmental degradation, such as deteriorating soil health. Independent smallholder farmers, who manage more than 40% of the palm oil planted in Indonesia, often face obstacles to meeting RSPO and ISPO standards, such as resource scarcity, unequal access to knowledge, and land tenure issues. This initiative aims to address these barriers by providing farmers with the tools and training needed to adopt sustainable practices, achieve certifications, and improve market access.

At the landscape level, the project fosters a multi-stakeholder partnership involving business, government, and civil society actors to strengthen ecosystem protection. These efforts safeguard biodiversity and support harmonization with global sustainability standards such as the EUDR. A Model for Sustainable Palm Oil Production

By combining private sector commitments with the expertise of non-profit organizations, 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 ensure a reliable, sustainable, and traceable palm oil supply chain.