Diana Chalil CSSPO – Universitas Sumatera Utara

Palm Oil Supply Chain Lead Researcher & Lecturer, Universitas Sumatera Utara, Indonesia Founder & Coordinator, Consortium Studies on Smallholder Palm Oil (CSSPO)

Dr. Diana Chalil began studying small-scale palm oil supply chains in 2003 while pursuing her Ph.D. at the University of Sydney.

Since then, she has published numerous research papers related to palm oil, including market dynamics, certification, bilateral trade, inclusivity, risks, workload of harvesting, replanting, landscape management, and the welfare of small farmers

In 2015, Dr. Diana Chalil and her team at the Universitas Sumatera Utara established the Consortium Studies of Smallholder Palm Oil (CSSPO) with colleagues from Indonesia (Universitas Jambi and Universitas Malikussaleh), Malaysia (Universiti Putra Malaysia), and Thailand (Prince of Songkla University) (csspo.or.id). Since 2016, CSSPO has partnered with CIRAD, the French Research Center for International Development, signing an MoU in 2018 and conducting several joint research projects and annual conferences. As part of efforts to improve the inclusivity and sustainability of smallholder palm oil plantations, CSSPO also manages training programs for palm farmers, participates in palm plantation replanting programs in Indonesia, and actively participates in the Indonesian Palm Oil Platform.

Currently, Dr. Chalil is analyzing the gap between the existing conditions of farmers and the targets to be achieved to meet ISPO certification requirements and exploring the potential benefits that farmers can gain after obtaining ISPO certification. The study is conducted through desk research and consultations via Focus Group Discussions (FGD) and interviews.

Bu Diana 2

The study found that implementing ISPO certification for farmers needs to be planned, phased, and involve all stakeholders. The existing conditions show that generally, there are many ISPO criteria that farmers have yet to meet, although the conditions depend on the type of group. Legal compliance with STDB is still very low across all types of groups, but compliance with GAP is quite good for groups with established partnerships, such as plasma/ex-plasma groups. Farmers need incentives to be willing to participate. One of the main incentives expected is a premium price. However, increased selling prices and productivity are not direct impacts felt by ISPO-certified farmers.

Recommendations from this study include: a) The need for data collection and mapping to develop a measurable planning matrix; b) The need for phased planning. Phased plans can be made after identifying farmer groups based on their readiness to meet ISPO criteria, including fulfilling necessary documents; c) The need for the involvement of all stakeholders to reduce costs and facilitate the implementation of ISPO Certification; d) Expected funding sources are from BPDP/external assistance and self-funding; e) Strengthening the implementation of a good supporting system from the central to the district level, including for data collection, STDB management, SPPL, and applying for certification funds.