Scheme Smallholder

DSN Group establishes partnership with scheme smallholders around its operational areas through scheme smallholder cooperatives. There are 55 scheme smallholder cooperatives spread across East Kalimantan (32 cooperatives), North Kalimantan (2 cooperatives), Central Kalimantan (7 cooperatives), and West Kalimantan (14 cooperatives).

DSN Group provides periodic technical assistance to scheme smallholders as follows:

  • Scheme of organizing smallholder cooperatives.

DSN Group facilitates a village-based scheme of organizing smallholders for the establishment of cooperatives in collaboration with the Cooperative Office including other legal requirements following national and regional regulations.

  • Plantation operations and development.

Based on the plantation management agreement between DSN Group and scheme smallholders, DSN Group has fully implemented the scheme smallholder plantation since the beginning of plantation development. The plantation operations follow DSN Group operating standards and procedures or apply similar standards to core plantations.

  • Securing fresh fruit bunch markets for the scheme smallholders.

DSN Group manages some mills that invite fresh fruit bunch supply of scheme smallholders through the scheme smallholder cooperatives. To ensure the security and price stability of fresh fruit bunches of scheme smallholders, DSN Group follows the fresh fruit bunch unit price which is officially set by the Provincial Plantation Office.

  • Securing land ownership and legal business permits.

DSN Group regulated scheme smallholders through its scheme smallholder cooperatives and prepared land rights certificates granted by the National Land Agency (BPN) starting in June 2019. DSN Group facilitates cooperatives for legal business registration on a single business number (NIB – Business Identification 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

“Since 2005, DSN Group has provided technical assistance to 46 partner cooperatives or about 83% of the total that have collaborated with DSN. Furthermore, 3 cooperatives in East Kalimantan have started participating in the program since 2019, and then followed by 6 cooperatives in West Kalimantan. The volume of supply of fresh fruit bunches of 49 cooperatives to palm oil mills of DSN in 2019 was 361,390 tons of fresh fruit bunches with a contribution of around 14.1% of total fresh fruit bunch revenues.”