Reflecting on a second year of impact in critical palm-producing landscapes in Indonesia
As the Action for Sustainable Derivatives (ASD) Impact Fund celebrates its second anniversary, there is plenty of positive news to report from the Kaleka Mosaik Initiative – the project designed to drive regional economic development and sustainably restore landscapes in two of the largest palm-producing districts in Central Kalimantan, Indonesia.
To recap: it is from Central Kalimantan that ASD member companies source on average 8% of their palm derivatives. Eleven ASD members – Avon, Clariant through its Foundation, Clarins, The Clorox Company, Croda International, Croda Foundation, The Estée Lauder Companies through its Charitable Foundation, Gattefossé, Haleon, Seppic, Stéarinerie Dubois and Zschimmer & Schwarz – have supported the Kaleka Mosaik Initiative via the ASD Impact Fund at Tides Foundation.
Ecosystem restoration taking place in Kelurahan Mendawai Seberang
And the past 12 months have been a transformative period for the Mosaik Initiative, with the ASD Impact Fund playing a key role in advancing jurisdictional certification processes, as well as achieving direct impact in communities.
Here are the highlights:
1. Achieving sustainable palm certification to advance local development
From the start of the Impact Fund’s support of the Mosaik Initiative, 610 farmers have obtained RSPO certification, enabling them to trade RSPO credits. An additional 204 farmers in two villages have been involved in the certification process, which consists of extensive training sessions and legal documentation. RSPO certification supports farmers’ economic development by facilitating access to premium markets and improving productivity and profitability through sustainable practices, ultimately leading to broader environmental benefits.
2. Land replanting, protecting forests and providing community incentives
Further to certification efforts, more than 100 hectares of degraded land in three villages have been replanted. Crops planted in the restoration area include ecologically-, economically-, and socio-culturally- valuable trees. For example, semi-permanent nurseries have been established, integrating high-value crops like durian and crystal guava. In two villages, local communities protected 2,732 hectares of forested landscapes through Social Forestry and Village Regulation schemes. This achievement has surpassed the conservation target of 1,500 hectares for the year. The initiative provided incentives such as agroforestry crops and silvopasture areas (integrating trees and pasture into a single system for raising livestock) to encourage forest conservation.
3. Laying the foundations for district-level regulations to boost competitiveness and regional economic development
Kaleka created a comprehensive blueprint for an agri-food business cluster focused on community-based agroforestry commodities. This blueprint lays the groundwork for regional economic development by boosting the competitiveness of local agricultural products. The blueprint included a technical note and policy brief on the Seruyan Agri-Food Industrial Cluster, outlining essential infrastructure needs and policy recommendations for the district government.
4. Making a district-level farmer association a reality for multiple commodities
Farmers are provided high economic value crops, such as patchouli and citronella, to cultivate as an incentive for restoration activities. Advancing the production and distillation of essential oil at scale can help improve the regional economy and simultaneously promote sustainable agriculture practices. Creating a district-level farmer association is key to this process, to support the procurement of essential oil processing equipment and essential oil production training for local farmers and communities. Establishing a jurisdictional association also facilitates better pricing, quality uniformity, and trading of these commodities.
5. Enhancing business intelligence and market development
Kaleka Mosaik Initiative developed a market research brief focusing on essential oil, palm sugar, and aquaculture products and devised strategies to improve the market potential of such products, including the participation in agri-food exhibitions and conferences. Specifically, engagements with the Indonesian Essential Oil Board and other market players were initiated to enhance product visibility and investor interest.
ADDO and ICS Training in Desa Bumi Jaya, Seruyan
While the second year of the ASD Impact Fund’s involvement in the Kaleka Mosaik Initiative has been overwhelmingly positive, a number of challenges remain. Forest and land fires in Pematang Limau affected 80% of restoration plants, forcing restoration sites to be relocated. Flooding also delayed verification processes, further highlighting the project’s vulnerability to natural disasters.
Elsewhere, preparing land in peat and mangrove ecosystems proved labour-intensive due to soil acidity, salinity, and fire potential. And changes in village leadership delayed the establishment of the Village-Owned Enterprise in Ratu Elok, affecting the continuity of administrative processes.
Lessons learned
The Fund’s second year also saw many valuable lessons learned. Creating a district-level farmer association proves crucial for scaling sustainable village development across the entire Seruyan district, ensuring consistent and widespread impact.
Providing diverse training materials, including video lessons and printed booklets, ensures that all farmers, regardless of access to electricity or the internet, can benefit from educational resources. Organising training sessions at the sub-village level makes it easier for farmers living in scattered locations to attend, ensuring broader participation and knowledge dissemination.
Choosing crops like pineapple for agroforestry in suitable soils, such as peat in Mendawai Seberang, underscores the importance of matching crops with land characteristics to ensure successful cultivation.
When it comes to developing an industrial cluster, collaboration across multiple sectors is key. Attracting private sector investment necessitates infrastructure readiness, land availability, skilled workforce, and streamlined bureaucratic processes.
Moving forward
The partnership between ASD and the Kaleka Mosaik Initiative has driven significant progress in promoting sustainable palm oil production and empowering local communities through innovative and collaborative efforts. The past year has been marked by notable achievements in agri-food business development, farmer association formation, market strategy enhancement, and forest conservation. Despite facing environmental and administrative challenges, the initiative has demonstrated resilience and adaptability, drawing valuable lessons for future development.
Looking ahead, the focus will be on finalising key documents, legalising associations, continuing restoration and certification processes, and maintaining strong partnerships with stakeholders. The dedication of local communities, support from the Tides Foundation, and collaborative efforts from various partners will continue to drive the initiative towards achieving its long-term sustainability goals.
