The funding will be used to implement the Biodiverse & Inclusive Palm Oil Supply Chain (BIPOSC) program, which focuses on applying regenerative agriculture models to oil palm farming.

This long-term collaborative program, which started in 2021, has already been rolled out to smallholders in Labuhanbatu, North Sumatra.

Rizki Pandu Permana, Country Director of SNV Indonesia, said that the funding for this project is part of a consortium investment supporting a 6-to-10-year program.

"The total funding is EUR4.7 million over six years from four companies," Rizki told a press conference on Thursday, October 17, 2024.

He said that SNV is implementing this program to support the Indonesian government in achieving its Sustainable Development Goals (SDGs).

The program aims to be effective and have a wide-reaching impact on transforming the agricultural, food, energy, and water sectors.

"Through the BIPOSC program, we are comprehensively applying regenerative agriculture and agroforestry models to preserve soil fertility and biodiversity, benefiting the economy and the livelihoods of farmers," Rizki said.

Rob Nicholls, General Manager of Projects & Programs at Musim Mas Group, emphasized that BIPOSC aims to achieve a sustainable palm oil supply chain through regenerative farming practices.

"The locally adapted agroforestry model and ecosystem protection are expected to create a deforestation-free palm oil supply chain," Nicholls said.

He cited that smallholders are key to the future of the sustainable palm oil industry. Musim Mas has been running Indonesia's largest smallholder empowerment program since 2015.

He believes that collaboration with various stakeholders will have a broader positive impact.

"Collaborating with L3F, SNV Indonesia, and ICRAF will help improve the capacity of smallholders, particularly in land management and alternative income streams, to achieve sustainability in a biodiverse and inclusive palm oil supply chain," Nicholls concluded.