Agriterra, Ministry of Cooperatives, KSMJ and RSPO sign MoU to empower farmer cooperatives in Indonesia

Agriterra, Ministry of Cooperatives, KSMJ and RSPO sign MoU to empower farmer cooperatives in Indonesia

Agriterra, Ministry of Cooperatives, KSMJ and RSPO sign MoU to empower farmer cooperatives in Indonesia

Jakarta, 6 October 2025 - Agriterra hosted the Dissemination Event "Strengthening Rural Economies through Resilient Agriculture and Farmer Cooperatives in Indonesia" on 6 October in Jakarta. The event highlighted Agriterra's project impact of five years in supporting agricultural cooperatives across multiple commodities in Indonesia, with a focus on business development, cooperative governance, and financial management. The event also emphasised Agriterra's key lessons on the importance of collaborating with a diverse range of stakeholders to enhance the role of cooperatives in building a sustainable rural economy.

During the event, Agriterra signed a Memorandum of Understanding (MoU) with the Ministry of Cooperatives of the Republic of Indonesia in developing agricultural cooperative, focusing on transforming governance and professionalising farming business. In addition, Agriterra, the Roundtable on Sustainable Palm Oil (RSPO), and Koperasi Sekunder Karya Sawit Mandiri Jaya (KSMJ) signed a tripartite MoU to foster sustainable palm oil value chains under the EU-funded project Palm Oil Sustainability & Traceability Enhancement Programme (PALMSTEP) in Kotawaringin Barat, Central Kalimantan.

"For the past five years, Agriterra has worked hand in hand with Indonesian farmer cooperatives to build stronger organisations, better governance, and sustainable businesses. With the MoUs signed today with the Ministry of Cooperative, RSPO, and KSMJ, we are opening a new chapter to support palm oil cooperatives in building resilient, green value chains," said Marit de Slegte, Chief Programme Officer Agriterra.

In the palm oil sector, this partnership aims to strengthen the capacity of palm oil cooperatives and smallholders by promoting sustainable practices, improving operational readiness for certification, and enhancing access to responsible markets and financing. Each partner brings complementary expertise to support certification efforts, business development, and the long-term sustainability of the value chain.

"This MoU is not just about certification, it is about fairness, resilience and inclusive growth. Closing the yield gap strengthens Indonesia's competitive edge as sustainability, traceability and equity become the new rules of trade. By empowering farmer cooperatives, we are building a model of sustainable palm oil that places smallholders and communities at the heart of the value chain, proving that sustainability and inclusivity drive long term competitiveness for farmers, markets and the environment," said Joseph D' Cruz, Chief Executive Officer RSPO.

The event was attended by the Minister of Cooperatives, the Ambassador of the European Union to Indonesia, and the Deputy Ambassador of the Dutch Embassy to Indonesia, highlighting the strong support and collaboration between government and international partners in promoting cooperative development in Indonesia.

"The EU Delegation to Indonesia welcomes Agriterra's continued commitment to farmer cooperatives in Indonesia, especially in the palm oil sector. Cooperatives play a central role in rural development and resilience. Today's event demonstrates how international collaboration can enhance smallholders' role in global supply chains," said H.E. Denis Chaibi, EU Ambassador to Indonesia.

"Agriterra's learning outcomes and best practices can be replicated in more regions across Indonesia. Moreover, multi-stakeholder partnerships between the government, businesses, development partners, and cooperatives are strengthening. And most importantly, our rural economy is becoming more resilient, independent, and sustainable," said H.E. Ferry Juliantono, Minister of Cooperatives of Indonesia.

Building stronger rural economies through resilient agriculture and farmer cooperatives in Indonesia requires the collective effort of all stakeholders. Government, private sector, civil society, and local communities must come together because no single actor can drive this transformation alone. Only through collaboration can we build a sustainable and inclusive future for Indonesia.

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About Agriterra

Agriterra is a Dutch non-profit organisation that supports farmer-led cooperatives and agribusinesses in developing countries, strengthening their governance, financial management, and business capacity to improve farmer incomes and resilience.

About RSPO

The Roundtable on Sustainable Palm Oil (RSPO) is a global, multi-stakeholder initiative dedicated to promoting the growth and use of sustainable palm oil products through credible global standards and engagement of stakeholders.

About the European Union

The European Union (EU) is a political and economic union of 27 Member States. Together, the EU has built a zone of stability, democracy and sustainable development while maintaining cultural diversity, tolerance and individual freedom. In 2012, the EU was awarded the Nobel Peace Prize for advancing the goals of peace, reconciliation, democracy and human rights in Europe. The EU is the world's largest trading bloc, and the world's largest source and destination of foreign direct investment. Collectively, the EU and its Member States are the largest donors of Official Development Assistance (ODA), providing more than half of ODA globally.