Independent Smallholder
DSN Group also provides technical assistance to independent smallholders around its operational areas through independent smallholder cooperatives. The technical assistance is mainly aimed at 5 independent smallholder cooperatives in East Kalimantan. This aims to improve the performance of the cooperative management in supporting good agricultural practices implemented by its 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.
- Developing database 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 always makes regular efforts to provide consultations on agronomic aspects such as pest control, oil palm tree care and fertilizer application. In 2023, we progressively supported local farmers by providing training on good and sustainable agricultural practices to 8,454 Plasma & Independent Smallholders (100%) in the East Kalimantan Region after External Verified (Ramboll Assessment) From May-August 2024.
Some of the independent smallholder cooperatives that have benefited from DSN Group are Karya Prima Wehea Sejahtera (KPWS), Usaha Tani Lestari Jaya (UTLJ), Semoga Sawit Wahau Jaya (SSWJ), Hijau Daun, and Putra Wahau in East Kalimantan. All cooperative members have shown a high spirit of cooperation and engagement in DSN Group’s programmes since 2018.
For information, DSNG has received a total FFB supply volume of external suppliers to DSN Group’s palm oil mills (PKS) in 2023 of 628,019.38 tonnes of FFB or around 23.75% of the total FFB processed. In detail, the FFB origin of this Partnership is 45,400.18 from IPC, 196,017.45 from Cooperatives, and 386,601.76 from FFB Agents.