Scheme Smallholder
The Company has established partnerships with plasma farmers around its operational areas through plasma farmer cooperatives. As of December 2023, there were 86 smallholder cooperatives spread across East Kalimantan (62 cooperatives), North Kalimantan (2 cooperatives), Central Kalimantan (7 cooperatives) and West Kalimantan (15 cooperatives) with a total of approximately 11,335 smallholders collaborating in this program.
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