Jakarta, Indonesia, October 2024: Embodying the spirit of shared responsibility, the SmallHolder INclusion for Ethical Sourcing (SHINES) programme was launched in October 2024 by PT REA Kaltim Plantations (RKP) alongside its corporate partners and RSPO.
Created in response to the significant challenges faced by independent smallholders in complying with evolving sustainability regulations, such as the European Union Deforestation Regulation (EUDR), SHINES aims to empower 600 independent smallholders in Kutai Kartanegara, near RKP’s East Kalimantan plantations by providing technical training, knowledge transfer, and capacity-building to achieve regulatory compliance and RSPO Certification.
Set to run from 2025 to 2027, SHINES goes beyond certification training and compliance by promoting activities related to forest conservation and biodiversity protection, while supporting smallholder livelihoods through sustainable practices.
In his opening remarks in Jakarta, RSPO Chief Executive Officer, JD D’Cruz said, “For many independent smallholders, regulatory compliance can be an overwhelming hurdle, yet non-compliance leaves them at risk of being excluded from supply chains. RSPO is proud to support initiatives like SHINES that embrace our shared responsibility in achieving our vision of sustainable palm oil production, while safeguarding the livelihoods of smallholders and enhancing their role in the supply chain.”
Smallholders at centre of Indonesia’s palm oil production
Smallholders make up 41% of Indonesia’s palm oil production, fueling the country’s dominance as the world’s top palm oil producer. Over recent years, Indonesia has been building a more sustainable industry, enjoying significant growth in RSPO Certification among the country’s independent smallholders and mills. RSPO’s most recent data shows that in 2023, total certified areas by Indonesia’s independent smallholders grew by 60% compared to the end of 2022.
Despite the crucial role smallholders play in the industry, they continue to face immense challenges, particularly as emerging new regulations around the world are obliging them to meet stricter requirements to demonstrate sustainability compliance.
SHINES addresses this challenge by bringing together multiple stakeholders to ensure that smallholders will not be excluded from market access. RSPO will work with the SHINES partners to provide access to training and facilitation on certification, capacity development, and expert resources required for the programme’s implementation. The programme will ensure that the 600 independent smallholders, who supply to REA Kaltim’s Mass Balance mill, will be both EUDR-compliant and RSPO Certified by 2027.
Ethical sourcing
The SHINES programme underscores RKP’s commitment to fostering inclusivity and sustainable palm oil production. Dr. Bremen Yong, PT REA Kaltim Plantation’s Group Chief Sustainability Officer said, “The concerted efforts of our partners exemplify shared responsibility in action. By actively including smallholders in sustainability efforts, the SHINES programme aligns with our shared goals of creating a more equitable and resilient palm oil supply chain. This initiative not only strengthens smallholder compliance with global standards and reinforces ethical sourcing for the entire industry, ultimately driving positive changes across the value chain.”
D’Cruz added, “As its name suggests, the SHINES programme truly shines as a model of partnership and shared responsibility in working towards common sustainability goals. When smallholders are uplifted, the whole industry is uplifted.”