Musim Mas Completes Five-Year Smallholder Program in Aceh, Strengthening Livelihoods and Environmental Stewardship

SINGAPORE, Oct. 23, 2026 /PRNewswire/ -- Musim Mas announced the completion of a five-year collaboration in Subulussalam, Aceh, Indonesia, demonstrating how supply chain partnerships can deliver measurable improvements in smallholder livelihoods while supporting efforts to address deforestation beyond concession areas. Aceh is a priority landscape as 87% of the highly biodiverse Leuser Ecosystem lies within the province.

The initiative, supported through supply chain collaboration including funding from AAK and other partners, focused on independent smallholders operating outside company-managed concessions. It combined capacity building, responsible agricultural practices, financial literacy and environmental monitoring to address the interconnected challenges facing smallholder communities and the landscapes in which they operate.

The program is part of Musim Mas' Smallholders program, where Musim Mas trains smallholders on sustainable practices. Musim Mas also takes a train-the-trainer approach for government Village Extension Officers (VEOs) to build local capacity and knowledge. Over five years, the program trained 117 VEOs, who, with support from Musim Mas field assistants, reached 2,239 independent smallholders across 48 villages. The project had vastly exceeded its initial target of training 40 trainers and 1,000 smallholders.

Building local capacity to drive lasting change

Smallholders were trained on Good Agricultural Practices (GAP) aligned with No Deforestation, No Peat and No Exploitation (NDPE) principles. The program was then expanded to cover advanced training modules equipped for both VEOs and farmers with skills in adult learning, public speaking, financial literacy, and farm management. Further advanced training was provided to the VEOs, including preparation for the Indonesian Sustainable Palm Oil (ISPO) requirements, understanding soil health, and home composting.

This approach ensures that knowledge and capabilities remain embedded within local communities, enabling continued impact beyond the duration of the project.

Linking livelihoods and environmental outcomes

The program integrates productivity improvements with environmental protection, recognising that sustainable livelihoods are essential to reducing deforestation risks. Key outcomes include:

• Increased adoption of GAP practices across 48 villages, which resulted in improved yields and responsible use of inputs
• Smallholders gained financial literacy including use of banking services and daily expense logging
• Based on the Roundtable on Sustainable Palm Oil (RSPO) sampling method, 82% of sampled smallholders now implement GAP in the field
• A Women Smallholders Program, reaching over 200 participants with training in health, nutrition and financial literacy modules

A model for scaling impact

The completion of the Subulussalam program marks an important milestone in demonstrating a scalable model for addressing complex sustainability challenges in palm oil supply chains.

By combining local capacity building, data-driven monitoring and cross-sector collaboration, the initiative provides a framework that can be adapted and replicated in other sourcing regions.

The partners recognise that sustainable transformation is an ongoing process. Building on the progress achieved, there are opportunities to further strengthen impact through continued engagement with local stakeholders, expanded training modules and exploration of additional livelihood initiatives.

"This initiative reflects our commitment to working across the supply chain to support farmers and promote responsible sourcing. By investing in smallholder livelihoods, we are helping to create more resilient and sustainable supply chains," said Sengbee Ng, Sustainable Multi-Oils Manager, AAK.

"Collaboration is essential to driving durable progress in complex supply chains. Our Smallholders program has proven it is fit for purpose, bringing together players across the supply chain to deliver greater impact. We are proud of this partnership that has produced tangible benefits for both independent smallholders and the local government," said Olivier Tichit, Director of Communications and Sustainability, Musim Mas.

About Musim Mas

Musim Mas Group is an integrated palm oil group operating in 14 countries and one of the largest palm oil producers in the world. From plantations to mills, refineries, kernel-crushing, oleochemicals, specialty fats, and functional products, Musim Mas manufactures palm oil products and value-added derivatives. The Group develops innovative value-added solutions for its customers, supported by Research and Development (R&D) centers in Singapore and Indonesia. Inter-Continental Oils and Fats (ICOF), a member of Musim Mas Group, undertakes its international marketing activities.

The Group was the first company with significant operations in Indonesia to join the Roundtable on Sustainable Palm Oil (RSPO) in 2004. In October 2024, Musim Mas announced that the Science Based Targets initiative (SBTi) has officially validated the Group's greenhouse gas emissions reduction targets. Musim Mas also manages the most extensive independent smallholder program in Indonesia, enhancing the livelihoods of smallholder farmers and improving sustainability in the sector.

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SOURCE Musim Mas