Stories Building Trust Through Partnership

Behind every bunch of oil palm fruit lies a story of hard work, hope, and trust.
For farmers like Umar and Atno, partnering with a plantation company is not just about business, it is a pathway to a better future.

For Umar Isnadi, Chairman of KUD Sidodadi in Tanjung Benuang Village, Jambi, oil palm is more than just a livelihood. It represents the hopes of his family and the hundreds of cooperative members he leads. Since 2000, Umar has dedicated his life to oil palm farming, supporting his family and community through the work of his hands.

From the beginning, he chose to partner with PT Kresna Duta Agroindo (KDA), recognising the many benefits it offered. Through a partnership with PT KDA under the Smallholder Replanting Programme (PSR) Sarana Produksi/Saprodi scheme, farmers receive high-quality agricultural inputs such as certified seedlings, fertilisers, and essential farming tools. This support helps ensure proper replanting practices, leading to higher yields and more sustainable plantation management. By reducing the financial burden on farmers and providing technical guidance, the programme enables them to improve productivity, secure better incomes, and build stronger, more resilient livelihoods.

According to Umar, being an independent palm oil farmer comes with many challenges. Farmers are always looking for ways to improve how they manage their plantations; from crop care and fertilisation to processing the harvested fruit. “When you are on your own, everything is so difficult. You have to manage everything by yourself, even though there’s so much we don’t fully understand,” he explained.

Returning to Partnership for a Better Future

Umar had previous experience with PT KDA under the company’s plasma scheme.  When the plasma period expired – between 2010 and 2015 for different areas of his farm – he continued farming independently. However, that period only strengthened his belief that partnership was the best choice. In 2025, he decided to rejoin PT KDA through the Smallholder Replanting Programme (PSR)..

When Umar managed his plantation independently, his production dropped drastically. Previously, he could achieve 6–7 tonnes per month from two hectares of land, but this declined to only 2–3 tonnes. The decline had a severe impact on his household income. “Back when I was still in the partnership, we could produce an average of 6–7 tonnes per month. After managing it ourselves, at best we only reach 2–3 tonnes per month. Our income was cut in half, it was a very difficult time,” Umar shared.

For Umar, the decision to return to partnership was built on trust. He had seen how the company previously managed operations transparently and delivered maximum results. This trust became the foundation for a long-term, mutually beneficial relationship.

Ease of Access and Company Support

The PSR programme run by PT KDA provides farmers with various forms of support, including access to superior seeds; Dami Mas, fertilisers and fertilser schedules, and guidance on sustainable oil palm farming practices.

The company also assists with administrative processes that are usually time-consuming and complicated, such as gathering land certificates, photocopies of land titles, family cards, and ID cards.

Through PSR, farmers receive financial support from BPDP, offers a grant of IDR 60 million per hectare up to a maximum of four hectares per farmer, to support oil palm replanting. Managed through farmer groups or cooperatives, the fund covers certified seedlings, land preparation, fertilisers, and technical training. This support eases the high costs of replanting, helping farmers improve yields, reduce debt, and build a more sustainable and profitable livelihood.

Technical guidance, quality seeds, and fertiliser provision are also key parts of this partnership. Nazarudin, PSR Coordinator at PT KDA, explained that the company provides high-quality seeds, expert agronomy assistance, and a network of contractors that help reduce replanting costs.

These initiatives align with PT KDA’s sustainability ambitions as part of Sinar Mas Agribusiness and Food. The company’s goal, outlined in its sustainability framework Collective for Impact, includes training for 100,000 smallholders in good agricultural practices by 2035.

Farmers’ Hopes for the Future

A similar story comes from Atno Wadi, a member of KUD Sidodadi who has been a palm oil farmer since 1960. Over time, his trees aged, and productivity declined. Atno wanted to replant, and PT KDA’s PSR partnership programme came at exactly the right moment. “We are grateful that the company came up with a solution. It’s not just about funding, but also about training and guidance. We’ve learned how to farm oil palm the right way,” Atno said.

For Atno, this partnership provides a sense of security. He no longer has to worry about where to sell his harvest because the company guarantees a selling price in line with regulations set by the local Plantation Office (Disbun).

Through the PSR programme, Umar, Atno, and all members of KUD Sidodadi have high hopes. They aim to restore their plantation productivity to previous levels, and even exceed them.

Their hopes are simple yet essential: guaranteed high-quality seeds, timely fertiliser availability, and continuous guidance from agronomy experts.

“We want to achieve maximum yields, but we also want to learn and grow. With the company’s support, we are confident that our future will be brighter,” Umar concluded.