Independent Smallholder

DSN Group also provides technical assistance to independent smallholders around its operational areas through the independent smallholder cooperatives. The technical assistance is primarily aimed at 2 independent smallholder cooperatives in East Kalimantan. This aims to improve the performance of cooperative administrators in supporting good agricultural practices implemented by members or farmers.

Except for the establishment of cooperatives and support for plantation operations and development as support to scheme smallholders, DSN Group provides periodic similar technical assistance or support to independent smallholder cooperatives as follows:

  • Securing fresh fruit bunch markets for the independent smallholders.

DSN Group manages some mills, similar mills that serve scheme smallholders, inviting fresh fruit bunch supply of independent smallholders through the independent smallholder cooperatives. In all DSN Group operating areas in Kalimantan, the unit price for fresh fruit bunches of independent smallholders follows the local market unit price. Generally, the unit price is higher than what is officially set by the Provincial Plantation Office.

  • Securing land ownership and legal business permits.

DSN Group organized independent smallholders through the independent smallholder cooperatives to prepare land rights certificates issued by the National Land Agency (BPN) starting in June 2019. DSN Group facilitates cooperatives for official business registration of a single business number.

  • Improving cooperative management.

DSN Group facilitates the improvement of cooperative transparency and accountability practices by driving the implementation of the Annual Meeting of Members and benchmarking visits. DSN Group also provides training and financial management consultations, facilitates compliance of employee’s social insurance and health related to social security administrator for health and annual tax reporting by referring to taxable entrepreneurs regulations.

  • Database development and traceability documentation.

We are in collaboration with various suppliers including independent smallholder cooperatives. DSN Group has developed a database of independent smallholders or farmers simultaneously with traceability documentation since 2019, covering operational areas in East Kalimantan, Central Kalimantan, and West Kalimantan.

  • Providing agronomic consultation

DSN Group provides consultations on agronomic aspects, such as pest control, palm tree care, and fertilizer application.

Two independent smallholder cooperatives receiving DSN Group benefits are Karya Prima Wehea Sejahtera (KPWS) and Usaha Tani Lestari Jaya (UTLJ) in East Kalimantan. KPWS and UTLJ each have more than 100 farmers living in villages around the operational areas of DSN, Nehas Liah Bing, and Marga Mulia, East Kutai, East Kalimantan. All cooperatives have shown high cooperation and involvement in the DSN Group implementation program since 2018. The volume of supply of fresh fruit bunches from external suppliers to palm oil mills of DSN in 2019 was 241,129 tons of fresh fruit bunches, which was around 11.8% of the total fresh fruit bunch revenue.