Unilever Announces Sustainable Palm Oil Collaboration in Indonesia

Unilever and Indonesian government-owned palm oil plantation company PT Perkebunan Nusantara (PTPN) have signed a Memorandum of Understanding (MoU) to work together in Indonesia to support local mills and smallholder farmers to produce palm oil according to the standards of no deforestation, no development on peat and no exploitation of people and communities (NDPE). This produce-protect partnership will help farmers to increase their yields and improve their livelihoods, Unilever said.

As part of the partnership, PTPN will provide Unilever access to its mills and its supplying farmer base. Unilever will support the mills and farmers to obtain sustainability certification through a combination of dedicated resources, funding and technical expertise.

PTPN is a large player in the Indonesian palm oil industry working with an extensive network of smallholder farmers. The MoU with Unilever is expected to provide incentive for smallholder farmers to adopt sustainable agricultural and business practices as it supports the business case for sustainable palm oil as well as gives them access to the necessary training and skills to make the switch.

“As a Holding Company, PTPN III manages ± 61% of its area as oil palm plantations divided in 10 subsidiaries, some of which are already certified as sustainable. We are committed to continuing sustainable palm oil management. Palm oil from smallholders also enters our supply chain through PTPN Group’s palm oil mills. Therefore, being able to source from certified smallholder farmers gives us the ability to produce quality and sustainable palm oil products,” said Mr. Erwan Pelawi, Operating Managing Director, PTPN III Holding Company.