Danish government in collaboration with Preferred by Nature, Ferrero, SAN, Agriterra, and Musim Mas for Sustainable Palm Oil Production in Indonesia
- Communications
- 2 days ago
- 7 min read
JAKARTA, 27 May 2025 – 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.”
About Danida Green Business Partnerships (DGBP)
Danida Green Business Partnerships (DGBP) is a challenge fund designed to promote market-driven green transition and inclusive economic growth in developing countries in line with the Danish Strategy for Development Cooperation ‘The World We Share’. Once a year, DGBP is open for applications from commercially oriented multistakeholder partnerships between commercial- and non-commercial partners. Partnerships bring together complementary resources, capabilities and knowledge which can foster innovative business models capable of promoting both commercial and development objectives.
DGBP constitutes an important effort provided through Denmark’s development cooperation to lead the way in the fight for climate, nature and environment by combining private sector-led economic growth and green transition. By engaging private sector finance and competencies in combination with local development knowledge and administrative expertise of non-commercial partners, the programme aims to contribute to the Sustainable Development Goals (SDG), in particular addressing climate change mitigation, climate change adaptation, environmental protection, biodiversity and inclusive growth.
About Preferred by Nature
Preferred by Nature is an international nonprofit organisation working to support better land management and business practices that benefit people, nature and climate. Headquartered in Denmark, the organisation operates in over 100 countries, with a focus on land use sectors such as forestry, agriculture and climate impact commodities. The organisation promotes sustainability through projects, certification services, capacity building and tailored support to drive positive change in production landscapes and supply chains.
With a global team of 350+ staff members, Preferred by Nature brings 30 years of experience in developing practical solutions that support responsible practices. In Indonesia, the organisation maintains a legally registered entity and three offices, actively engaging with stakeholders to advance sustainable palm oil production. As members of the Danish Alliance for Responsible Palm Oil, Preferred by Nature is committed to upholding high standards for ethical and sustainable palm oil sourcing. Learn more: www.preferredbynature.org
About Ferrero Group
Ferrero began its journey as a pastry shop in the small town of Alba in Piedmont, Italy, in 1946. Today, it is one of the world’s largest sweet-packaged food companies, with 39 brands sold in more than 170 countries. The Ferrero Group brings joy to people around the world with much-loved products including Nutella®, Kinder®, Tic Tac®, and Ferrero Rocher®.
Around 47,000 employees are passionate about helping people celebrate life’s special moments. The
Ferrero Group’s family culture, now in its third generation, is based on dedication to quality and excellence, heritage and a commitment to the planet and communities in which we operate. For more information, please visit ferrero.com.
About Stichting Agriterra
Agriterra is a purpose-driven organisation, we provide expert advice and training to strengthen farmer cooperatives and organisations in emerging economies. Agriterra strengthens farmer ownership and stimulate economic growth for ambitious farmers worldwide. This contributes to socio-economically strong and lively rural areas. Agriterra was founded in 1997 by the Dutch agricultural cooperative sector: The Netherlands Agricultural and Horticultural Association, The National Cooperative Council for Agriculture and Horticulture, The Dutch Foundation of Cooperating Women’s Organisations and The Dutch Agricultural Youth Organisation. Together representatives from these top Dutch agricultural cooperative sector parties continue to form Agriterra’s Board of Directors.
As an international specialist in cooperative development, we work by using a three-track approach: (1) We make cooperatives bankable and create real farmer-led businesses. (2) We support in improving extension services to members. (3) We enhance farmer-government dialogues. Agriterra does this through peer-to-peer involvement in advisory services, training and exchange visits. Learn more: www.agriterra.org/
About the Sustainable Agriculture Network (SAN)
The Sustainable Agriculture Network (SAN) is a global impact network of diverse organizations working to transform agriculture into a catalyst for sustainability, resilience, and equity. Through the promotion of sustainable farming practices, SAN supports healthy ecosystems, protects biodiversity, and strengthens the livelihoods of farming communities worldwide.
SAN collaborates with a range of partners, including the governments of the United Kingdom and Switzerland, the Tinker Foundation, Nestlé, and Ferrero. The network provides strategic and technical support to these partners, empowering farmers to implement nature-based solutions that enhance and restore ecosystem services on their farms.
Together, SAN’s members operate annually in 120 countries, impacting over 40 million hectares and more than 300 crop systems. Learn more at www.sustainableagriculture.eco
About Musim Mas
Musim Mas Group is an integrated palm oil company globally, operating in 13 countries. From plantations, 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 palm oil producers in the world. The Group develops innovative value-added solutions for its customers, supported by Research and Development (R&D) centers in Singapore and 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-degree 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. Learn more: www.musimmas.com