Inclusive and Climate-Smart Palm Oil Supply Chains in Indonesia

This project supports the inclusion of independent smallholder farmers in sustainable palm oil supply chains in Riau, Indonesia – a region facing deforestation and market exclusion risks. Building on successful collaboration between Ferrero, Musim Mas, and Preferred by Nature, the initiative aims to increase income among 5,000–7,000 farmers through adoption of regenerative agricultural practices raising yields and compliance with ISPO/RSPO standards. 

A strong emphasis is placed on farmer-led business development, jurisdictional collaboration, and gender and youth inclusion. By enabling smallholders to meet evolving market and policy requirements, including EU Deforestation Regulation (EUDR), the project ensures continued access to international markets while also reducing climate and biodiversity risks. 

The initiative contributes to Indonesia’s National Action Plan on Sustainable Palm Oil, aligning with SDGs on climate, land, and livelihoods. Long-term change will be supported through capacity building, and the development of a scalable model for traceable, deforestation-free palm oil.