PALMOILMAGAZINE, RANTAUPRAPAT — Asian Agri, Apical, and Kao conducted a field visit to Rantauprapat, North Sumatra, on April 21–22 to evaluate the progress of the SMILE (SMallholder Inclusion for Better Livelihood and Empowerment) program, which has been running since 2020 to improve the welfare and capacity of independent oil palm smallholders.
The visit began at PT Supra Matra Abadi’s Aek Nabara Palm Oil Mill, a subsidiary of Asian Agri and a key node in the SMILE supply chain linking smallholders with end-user companies like Kao.
“At Kao, we follow the Genba philosophy—going directly to the field. We want to see firsthand how palm oil is produced, as it is a strategic raw material for us,” said Kenji Terasawa, VP of Procurement at Kao Corporation. He emphasized that the visit reflects Kao’s commitment to a responsible supply chain.
Besides reviewing farming practices and traceability efforts, the visit featured an open discussion on challenges faced by smallholders, especially regarding certification standards. Apical’s representative, Tor Mooi See, noted the evaluation is crucial to shape the next phase of the program: “We aim to expand the program’s impact by strengthening mill-farmer ties and promoting inclusive supply chains.”
The visit’s highlight was the inauguration of a village cooperative office in Labuhanbatu, funded by premiums from fresh fruit bunch (FFB) sales under the SMILE program. More than 100 participants attended, including farmers and guests, celebrating with traditional Batak tor-tor dances and ulos scarf ceremonies. The ribbon-cutting and plaque signing marked the official opening.
“This office is more than a building; it’s the result of our joint efforts,” said Khairul Anam, Head of the Cooperative. He noted SMILE has improved recordkeeping and promoted more sustainable practices.
Ivan Novrizaldie, Head of Sustainability at Asian Agri, added, “SMILE has had a significant impact on farmer empowerment through technical support, capacity building, and institutional development. This cooperative office is proof of that progress.”
Kao also introduced the “Suara Petani” (Farmers’ Voice) grievance platform, developed with the nonprofit Caux Round Table, to allow farmers to share feedback and concerns transparently.
The visit concluded with an interactive session with farmers and a hygiene education event at SDN 03 Tebing Tinggi Pangkatan, where Kao promoted handwashing practices.
To date, SMILE has reached 3,489 independent smallholders, with 1,373 already RSPO-certified. The initiative supports Asian Agri’s 2030 target to partner with 5,000 certified farmers and aligns with Apical and Kao’s vision for an inclusive, responsible supply chain. (P2)
