Sustainable farming methods, efficient production and high occupational health and safety standards are some of the most important conditions for certified palm oil production.
Smallholders can learn how to fulfill these requirements locally in dedicated training programmes. Since 2015, Henkel has been supporting the 5-year-project in the Indonesian province of West Kalimantan.
Earlier this year, BASF joined the effort as an additional industrial partner. The smallholder programme is implemented by Solidaridad in cooperation with its partners Good Return and Credit Union KelingKumang (CUKK).
The Australian non-governmental organisation Good Return coaches and supports the teachers who carry out training on the ground and who will continue the farmer support programme after the project ends. The teachers are employees of CUKK, the second largest local credit organisation in Indonesia.
Solidaridad and its partners want to establish sustainable supply chains for palm and palm kernel oil that both effectively improve smallholders’ living conditions and are eligible for certification according to the criteria of the Roundtable on Sustainable Palm Oil (RSPO).
Of the 5,500 farmers who will be reached by the project, 1,600 will learn about the different aspects of good agricultural practice (GAP) in direct training that will include measures for sustainable farming as well as for increasing crop yields.
Furthermore, around 3,900 smallholders will be reached not only through a multiplier effect, but also through farmer field days and regular text messages on their mobile phones. The project spans an area of roughly 16,000 hectares.

Committed to a sustainable palm oil industry
“We want to change the market to develop a sustainable palm oil industry. To do so, we also need solutions and projects that allow small farms to increase productivity on their plantations – and we are making an important contribution to that by supporting local partners and initiatives,” explained Thomas Muller-Kirschbaum, corporate senior vice president in the laundry & home care business unit and deputy chairman of Henkel’s Sustainability Council. “With BASF supporting this smallholder project as an additional industrial partner, we’re sending the signal that we are joining forces to make the palm oil market more sustainable.”
“BASF is one of the largest global manufacturers of ingredients for the cosmetics industry as well as the home care industry and one of the links in the palm oil supply chain from smallholders to end consumers. We believe that we can only find solutions for sustainable, certified palm oil products by working together to preserve the forests and improve the living conditions of the people in the farming areas,” said Jan-Peter Sander, senior vice president at BASF Personal Care Europe. “That’s why we are collaborating intensively with our customers and suppliers, and also want to involve more smallholders in the dialogue. The project in West Kalimantan is an important step in this direction.”
Higher yields and income for smallholders
The productivity of small farms in the palm oil industry is estimated to be 40 percent lower than the average when compared with larger companies. Measures ranging from farmer trainings to sustainable farming methods are expected to increase palm fruit yields and increase smallholders’ revenue. “We are delighted that Henkel and BASF are supporting this project in West Kalimantan,” said Marieke Leegwater,programme manager palm oil at Solidaridad. “We think that it is of great interest that companies using palm oil products take responsibility beyond just buying sustainable palm oil, and contribute to investing in more sustainable and inclusive palm oil supply chains on the ground. This project is expected to make a significant contribution to improve the livelihoods of independent oil palm farmers in the province of West Kalimantan, one of the poorest regions in Indonesia.”