The contribution of smallholder farmers is essential to sustainable oil palm plantation practices within the supply chain. The smallholder farmers contributed a significant role as a source of fruit supply for Astra Agro’s palm oil mills. One such farmer is Sabar, who has been in partnership with PT Sawit Jaya Abadi (PT SJA), a subsidiary of Astra Agro, since 2016. He willingly crosses provincial lines to deliver his harvest to the company’s mill, despite the presence of eight other palm oil mills in his plantation area.
For Sabar, an oil palm farmer from East Luwuk, the partnership with PT Astra Agro Lestari Tbk. is more than just a business arrangement; he feels genuinely cared for as a partner, particularly in terms of service and technical support.
“I am truly happy to partner with Astra Agro. Their service is extraordinary, and their attention to us farmers is impressive. They not only focus on increasing production but also ensure that their partners are well taken care of,” Sabar stated.
Sabar is one of many successful smallholder partner who have benefited from Astra Agro’s coaching program. Another example is Haji Bintoro, who began his career as a bicycle tool trader and cocoa farmer in Mamuju Regency, West Sulawesi, but now manages a 30-hectare oil palm plantation.
“I used to be a cocoa farmer. However, when the oil palm plantations were established, I replaced all my cocoa plants with oil palm because PT Astra Agro provided oil palm seedlings through the Income Generating Activity (IGA) program,” he explained. Haji Bintoro, originally from Demak, Central Java, credits his success as an oil palm farmer for enabling him to send his two children to college and build an Islamic boarding school. He has performed Umrah twice and expressed gratitude for the presence of PT Mamuang, a subsidiary of Astra Agro Lestari Group, stating that the community’s welfare has significantly improved.
“All residents with oil palm plantations here now have decent houses and motorized vehicles; many even own cars,” he shared.
Guidance for Smallholder Partners
Astra Agro develops various partnership programs based on the needs of its partners. One key initiative is the Partner Development and Assistance program.
“Partner coaching is part of Astra Agro’s efforts to educate farmers about effective oil palm plantation business practices and operations. This also supports excellence in the partnership sector,” said Anggit Timur Feri, Partnership Area Manager for Astra Agro in the Aceh region.
Astra Agro promotes partnership-based programs in palm oil production to enhance the implementation of sustainable practices and responsible sourcing. These programs include periodic education and technical assistance on sustainable plantation management, covering topics such as crop care and fertilization.
Helmi, one of Astra Agro’s farmer partners, shared that he has gained significant knowledge and education regarding effective plantation business practices. He emphasized that this knowledge is not only about making a profit but also about benefiting the environment.
“In the past, I did not understand what sustainability meant or why it was important. Now, my fellow partners and I are more aware of the business and operational processes of the plantation. We are taught the correct fertilization methods, how to select suitable fertilizers, and understand the feasibility of the fruit,” he said.
Amarta: An Awarding Event for Astra Agro’s Best Partners
Astra Agro is committed to building strong relationships with its Fresh Fruit Bunch (FFB) supply partners by recognizing their performance through the Astra Best Partner Appreciation program (AMARTA).
This initiative demonstrates the company’s dedication to the village communities surrounding its operations, particularly those that are not directly involved as fruit partners.
Jonet Budiarto, the East Kalimantan Area Operations Director, stated that AMARTA aims to strengthen the relationship between partners and PT WKP. This closer connection is designed to create a strong emotional bond and motivate partners to strive to become the company’s top partners.
The criteria for receiving the award include loyalty, meeting volume targets, providing high-quality FFB, and fulfilling the agreed quotas for FFB unit slots.
