General Assembly 18-2D

Resolution to review and amendment of the Remediation and Compensation Procedure (RaCP) process as applied to scheme smallholders.

Adopted (On-going)
Total Vote100.01
On the 10th of November 2016, RSPO General Assembly (GA) adopted Resolution GA13-6f submitted by Solidaridad and Setara Jambi titled “Resolution to review and amendment of the updated NPP process as applied to smallholders, be they scheme, associated or independent”. Following the adoption of the resolution, RSPO has issued RSPO Independent Smallholder Standard (RISS) 2019 and New Planting Procedure (NPP) 2021 which differentiate the implementation of RSPO standards/requirements and procedures for independent smallholders with scheme smallholders and plantation companies.

Currently, RSPO is developing the Remediation and Compensation Procedure (RaCP) document that aims specifically for independent smallholders given the application of RSPO Remediation and Compensation Procedures 2015 to smallholders would be an insurmountable barrier to smallholders, be they scheme, associated or independent. Regardless of the status of smallholders, be it independent or scheme, RaCP is the responsibility of smallholders (farmers) as the owner of the smallholdings.

The plantation company, as a partner of the scheme smallholders, is responsible for facilitating the development of the plasma plantation, managing it as agreed by the two parties, and buying the harvest/FFB at the agreed prices and/or prices according to government regulations. All the costs of development, management, and RaCP implementation of plasma plantations should be borne by the scheme smallholders.

The requirement of RaCP which is endorsed by RSPO BoG in 2015 is not only affecting farmer’s income but also the existence of the smallholding that falls into the remediation category for conservation areas. Plasma plantations that have been developed and then identified as HCV areas have to be conserved and cannot be replanted. In addition, the requirement to carry out a compensation project either with hectare to hectare approach or with hectare to dollar approach as much as USD 2,500 per hectares for 25 years, will be very difficult or almost impossible for smallholders to meet. Therefore, there should be an RaCP mechanism for smallholders, be they scheme, associated or independent.
  • Proponent
    Golden Agri-Resources Ltd, Musim Mas Holdings Pte. Ltd., PT. Inti Indosawit Subur, Lingkar Komunitas Sawit (LINKS), Yayasan FORTASBI Indonesia, Goodhope Asia Holdings Ltd., PT. Eagle High Plantations Tbk, PT. DHARMA SATYA NUSANTARA, PT. Triputra Agro Persada, Genting Plantations Berhad, PT. Barumun Agro Sentosa, BUMITAMA AGRI LTD, First Resources Limited, PT. Sampoerna Agro Tbk, Musim Mas Holdings Pte. Ltd., Cargill Incorporated, Kuala Lumpur Kepong Berhad, PT. Sawit Sumbermas Sarana, Sime Darby Plantation Berhad, M.P. Evans Group PLC, Socfin SA, SIPEF Group, PT. Bio Inti Agrindo, PT. Perkebunan Nusantara V (PERSERO), PT. Austindo Nusantara Jaya Agri, Yayasan FORTASBI Indonesia

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