## Empowering Independent Smallholders in Indonesia: The BIPOSC Project Promotes Regenerative Agriculture
The BIPOSC project, a collaborative effort involving Musim Mas Group, the Livelihoods Fund for Family Farming (L3F), SNV Indonesia, and World Agroforestry (ICRAF), is making significant strides in empowering independent smallholder oil palm farmers in Indonesia. This initiative, launched in 2021, adopts a long-term approach to cultivating a deforestation-free supply chain, regenerating degraded land, restoring local biodiversity, and improving the livelihoods of smallholders in Labuhanbatu, North Sumatra.
BIPOSC achieves these goals through the implementation of regenerative agriculture, locally adapted agroforestry models, capacity development for sustainable businesses, and more. The independent smallholder palm producers participating in the project initially received supplementary training from Musim Mas. Following the training, these smallholders established a smallholder association known as the Labuhanbatu Independent Smallholder Oil Palm Producers Association (APSKS LB), located in North Sumatra. Musim Mas encourages the formation of such associations, facilitating better access to resources and enabling the attainment of Roundtable on Sustainable Palm Oil (RSPO) and Indonesian Sustainable Palm Oil (ISPO) certifications.
A Collaborative Approach for a Sustainable Future
Rob Nicholls, General Manager of Projects and Programs at Musim Mas Group, emphasizes the crucial role of smallholders in achieving sustainable palm oil production. “Musim Mas has long considered smallholders key to achieving palm oil sustainability, which is why we lead the widest smallholder program in Indonesia. We believe the way forward is to collaborate with more partners to achieve wider impact. With our BIPOSC partners, we hope to improve the skills and knowledge of smallholders through regenerative agriculture and related techniques.”
Regenerative agriculture and agroforestry hold immense potential for smallholders, enabling them to be part of a sustainable palm oil supply chain. These practices can help develop alternative income sources, particularly during the replanting period when their oil palm crops are unproductive, typically for three years.
Combating Climate Change and Biodiversity Loss through Regenerative Agriculture
In the face of climate change and threatened biodiversity, regenerative agriculture offers a promising solution for smallholdings. It maintains soil health, prevents erosion and water runoff, and has the potential to reduce greenhouse gas emissions and nitrogen leaching.
Rizki Pandu Permana, National Director of SNV Indonesia, highlights the project’s alignment with Sustainable Development Goals (SDGs) and its commitment to transforming agricultural and food systems. “As a global development partner organization, SNV aims to support Indonesia in achieving its Sustainable Development Goals (SDGs). To achieve this, we need to implement effective and impactful programs to transform agricultural and food systems, energy, and water. In the BIPOSC program, we promote a comprehensive model of regenerative agriculture and agroforestry to maintain soil fertility and biodiversity, delivering maximum benefits to farmers’ livelihoods and the economy.”
Practical Techniques for Sustainable Farming
BIPOSC emphasizes practical regenerative agriculture techniques such as the application of bio-inputs, mulching to protect the topsoil, planting cover crops, integrated pest management that minimizes the need for chemical pesticides, and composting that reduces the reliance on chemical fertilizers.
The project’s impact is evident: to date, 1,032 independent smallholders have received training and are applying these techniques on their farms, covering a total area of 1,063.68 hectares. The project has trained 25 village facilitators to provide hands-on assistance to smallholders, and seven demonstration plots have been established as pilot areas and learning facilities for regenerative agriculture.
A Focus on Soil Health and Increased Yields
Bernard Giraud, Chairman and Co-Founder of Livelihoods, emphasizes the project’s focus on addressing the concerns of smallholders regarding soil health. “When I visited the smallholder oil palm producers in the area a few years ago, their biggest concern was access to more fertilizers. While fertilizers play a vital role in increasing yields, there was a notable gap in understanding how to protect the soil from long-term degradation. The smallholders needed more knowledge on how to maintain soil health, preserve its structure, and address other critical factors. This is exactly what the BIPOSC project aimed to address, and we are pleased to see that the farmers involved are now reporting not only higher yields but also healthier soils on their plots.”
Building Sustainable Business Models: The Compost Unit Success Story
Beyond the direct benefits to farmers, the BIPOSC project also emphasizes capacity development. In addition to promoting home composting, the project enabled the local farmer association, APSKS LB, to develop and manage a compost unit with a capacity of 100 to 150 tons per month. This unit, utilizing inputs from mills and nearby farmer plots, provides compost to member farmers at half the typical market price. In 2023, its first year of operation, the unit produced 588 tons of compost and generated a profit of 421 million IDR. The project partners believe this model is replicable in other locations.
Syahrianto, President of the Labuhanbatu Independent Smallholder Oil Palm Producers Association, highlights the transformative impact of the compost unit. “One of the most impactful outcomes of this project for smallholders is the Compost Unit as a business model revolving around it. It allows smallholders to obtain compost affordably, and the profits are shared among the member farmers. This is a practical solution to promote composting adoption, and all ASPKS-LB smallholders are now using compost on their plots.”
Shaping a Sustainable Future for Palm Oil Production
In 2023, independent smallholders managed approximately 41% of the oil palm plantation areas in Indonesia, representing 6.94 million hectares. This figure is expected to increase to 60% by 2030, highlighting the critical role of projects like BIPOSC in shaping the future of sustainable palm oil production. These projects provide a crucial pathway for smallholders to participate in a sustainable and responsible palm oil industry while safeguarding the environment and improving their livelihoods.
