RSPO Credits Power Rural Transformation – But Declining Credit Sales Put Smallholder Progress at Stake

By: Natalia Díaz

How a certified smallholder cooperative in Central Kalimantan, Indonesia, powered community transformation through sustainable agricultural practices and RSPO Credits, yet are facing obstacles due to declining Credits sales. 

It takes a village, as the saying goes.

For the KUD Tri Daya smallholder cooperative, a spirit of collaboration has driven the community’s transformation, proving that good agricultural practices and sustainable development go hand in hand. 

Situated in the Kotawaringin Timur Regency, Central Kalimantan in Indonesian Borneo, KUD Tri Daya first began their sustainability journey towards RSPO Certification in 2023. With support from non-profit organisations Strengthening Palm Oil Sustainability Indonesia Yayasan KEHATI (SPOSI KEHATI) as the programme donors, and JAVLEC Indonesia supporting field implementation, the cooperative gradually built trust, strengthened their group’s internal organisation, and improved farm management. 

“In the beginning, our biggest challenge was convincing other farmers to join because many did not know much about certification, and some did not believe in the system,” said Pak Rohmat Anshory, a smallholder from KUD Tri Daya. “But we kept assuring them that they would soon reap the benefits of certification.”

Certification boosts crop yields by over 100%

The group’s three-year long efforts towards certification have unlocked remarkable transformation. The farmers adopted better agricultural practices, shifted to safer and more environmentally-friendly pesticides, and began using personal protective equipment (PPE), all of which improved their workplace health and safety conditions. Today, KUD Tri Daya has grown significantly, now comprising 382 certified farmers managing 1,120 hectares of oil palm plantations.

Besides adopting agricultural practices, the group also improved their administrative systems and formalised their bookkeeping practices, thus increasing their overall financial literacy and transparency.

“Our members became more organised; we now have regular meetings at an office and in our fields, and we saw an increase in our yields,” added Pak Rohmat.

Higher yields translated into more than double the average monthly income per hectare — rising from 1.2 million Indonesian rupiah (≈USD71) to roughly 2.5 million rupiah (≈USD148) by their second year of RSPO Certification.

RSPO Credits: Lifeline for rural transformation

Beyond certification, a key driver of the group’s broader impact has been RSPO Credits. For KUD Tri Daya, RSPO Credits are more than a market mechanism — they are a lifeline for rural development. Revenue from RSPO Independent Smallholder (ISH) Credit sales has provided essential additional income for farmers, helping sustain the cooperative’s operations. At a broader level, RSPO ISH Credits have strengthened the wider community.

For KUD Tri Daya, RSPO Credits are more than a market mechanism — they are a lifeline for rural development.

“Through RSPO Credits, not only one member gets the benefits, but also the community at large,” adds Pak Rohmat. “The fund helps maintain our village, our youth and elderly – for example, they provide scholarships for students and financial assistance to the elderly and orphans.”

RSPO Credits have also reinforced local infrastructure, funding road and bridge repairs and  maintaining the village ambulance service, which ensures free hospital transport for residents. 

Despite these wide-ranging benefits, in recent years, sales from RSPO Credits have declined.

Pak Sigit Septiadi, another smallholder from the cooperative, shared, “We are seeing that people don’t buy Credits that much anymore. We are not sure if there are few buyers left or because of other reasons. We rely on those Credits to run our operations.  We hope that markets will become lively again and buyers will increase, because as of now, the Credits uptake for independent smallholders is very little.” 

Pak Rohmat echoed, “Many cooperatives in Indonesia feel the same, they complain about unsold credits. We hope that RSPO Credits sales can increase because we want to improve the facilities in our farms, give more scholarships to the students, and have better health facilities in our village.”

Global support to empower smallholders 

From healthier farms and higher incomes to stronger schools, safer roads and better healthcare, KUD Tri Daya’s story demonstrates that when smallholders are supported, sustainability delivers meaningful impact.  Yet this progress depends on continued partnership. 

By purchasing RSPO Independent Smallholder (ISH) Credits, companies and consumers alike can directly empower independent smallholders, incentivise responsible palm oil production and invest in thriving rural communities. 

As KUD Tri Daya’s story shows, every Credit purchased is more than a transaction: it is a commitment to people, to sustainable livelihoods, and a resilient future for the communities around which palm oil is built.