Over three million smallholder farmers rely on palm oil for their livelihoods globally, including in Indonesia. These farmers play a crucial role in the industry, producing approximately 40% of the world’s palm oil. To ensure their inclusion in sustainable supply chains, EQ has launched the “Inclusive Smallholders” program to address challenges faced by smallholders and promote inclusive models.
A major obstacle for smallholders in Indonesia is land legality, which hinders their ability to meet sustainability standards. EQ’s research up to 2022 found that only 48% of the estimated 7.9 million hectares of land held by smallholders is officially registered, while 3.3 million hectares are situated within forest areas, violating the NDPE policy.
This presents an opportunity for smallholders to leverage approximately 3.3 million hectares of land located in forest areas to participate in the PPTPKH program. By doing so, we can contribute to greater land tenure certainty and transparency within the supply chain.
