A seminar was held in Balikpapan to give complete perspective on how to build successful partnership between smallholders and palm oil companies.
The seminar organized by Indonesian Oil Palm Smallholders Association (Apkasindo) and Plantation Cooperative Mitra Sawit Lestari was held in Grand Tjokro Hotel, Balikpapan, East Kalimantan Timur, 6-8 November 2018.
The event which was also supported by the Indonesian Oil Palm Estate Fund (BPDPKS) has given a comprehensive and complete perspective oh how to build successful partnership between smallholders and palm oil companies with reference to Agriculture Minister Regulation Number 1 year 2018 concerning Directive on Purchasing Oil Palm Fresh Fruit Bunches Produced by Smallholders.
Partnership is a complete solution for smallholders to seek best palm oil price based on provincial ordinance. Partnership is also a solution for palm oil companies to continually have best quality fresh fruit bunches (FFB) supplies so that the companies can produce best quality crude palm oil (CPO).
According to Chairman of Regional Board of Director of Apksindo in Penajaman Paser Utara Regency Akhmad Indradi, the seminar has given a complete understanding for both smallholders and companies on partnership mechanism as well as the benefits can get from the partnership.
During the seminar, speakers also delivered presentations on tips and principles to build successful partnership. “However, partnership won’t be successful unles smallholders work hard and understand the mechanism very well,” Akhmad said.
The followings are the principles:
- Smallholders establish an institution (plantation cooperative) to unite smallholders interest in a formal business institution.
- Organizing a socialization process in order to give clear perspective on actual condition and to find best solution. After that, Fresh Fruit Bunches, harvested by smallholders, are collected to be delivered to the cooperative.
- Collecting data of the plantation and the owner such as smallholders identity, plantation condition, coordinate location, plantation certificates, etc. The data will be handed to the partner factory.
- Cooperative that has met all requirement will be recommended by Apkasindo and the government to communicate with partner companies. In this term, partnership agreement is drafted, conducting survey on location, and finishing other technical preparations.
- Partnership agreement is signed by cooperative and partner company, witnessed by the head of local government.
“The seminar has succeeded building perspective on the current issue and hearing with local government, Indonesian Palm Oil Association (Gapki), Apkasindo, smallholders, and cooperative board management,” Chairman of DPW Apkasindo Kaltim Sunyoto said. ***