In Kumpang Ilong village, Junaidi is a popular figure. His story is now part of the village folklore. A labourer who used to load palm fresh fruit bunches onto trucks and sell vegetables in the local market for a living, Junaidi is now a progressive farmer, growing oil palm on land he owns.
In Kumpang Ilong and several other villages in West Kalimantan, Indonesia, a story of transformation is unfolding.
Between Farm and Market: Farmer Challenges
West Kalimantan is home to a vibrant community of smallholder oil palm farmers whose livelihoods are tied to their land. The landscape, however, is not without its challenges.
Despite having one of the largest areas in Indonesia of oil palm plantations, the average productivity of smallholders in West Kalimantan is below the national average. Farmers here lack knowledge of sustainable plantation management. The remote location limits their access to finance, markets and support services. Compounding matters is the fluctuation in the prices of fresh fruit bunches (FFBs), which forces smallholder farmers to seek out middlemen for even nominally better prices.
Smallholders also depend on middlemen for inputs who loan to them at high interest rates and capture around 20% of FFB prices from them. The farmers thus bear the brunt of challenges at both farm and market levels—issues that do not make oil palm cultivation a profitable, sustainable proposition for them.
From the Ground Up
In 2012, when Solidaridad joined hands with Credit Union Keling Kumang, the partnership identified smallholders’ lack of access to knowledge on good agricultural practices and sustainable plantation management as the first challenge to address. Credit Union Keling Kumang, or CUKK, is a community-based, decentralized financial institution that addresses economic and environmental challenges affecting the marginalized in the region.
Initially working with 500–1,000 farmers in the region, Solidaridad field experts imparted knowledge on good agricultural practices while facilitating access to inputs that were previously inaccessible to the farmers. This thereby reduced their reliance on middlemen. Seeds, fertilizers and pesticides were provided through agricultural stores — established as part of the partnership with CUKK, supporting the stores with loans — and the store managers were trained in business planning and monitoring.
Oil palm nurseries are far and few in West Kalimantan. Oil palm nursery groups were formed and supported with seedlings and training on marketing. There are now five such groups (with 20 farmers each), distributing plants to the remote corners of this region. They procure high-quality seeds from farmer cooperatives, growing them in a protected environment. Come planting season, these groups enjoy brisk sales. On a batch of saplings sold, an oil palm nursery group makes a profit of around IDR 40,000 (more than 2 euros). The net profit is shared with the farmer cooperative.
At farmer field schools, oil palm smallholders were encouraged to transition from outdated, intensive practices to more informed, scientific methods. They were instructed on aspects such as the correct and optimal use of fertilizers, pest and disease management, as well as harvest management. A research and development unit established under the collaboration tested the efficacy of the solutions at a local level, ensuring that the project was well-equipped to handle emerging challenges.
By adopting good agricultural practices learned in farmer schools, and applying them consistently on their farms for a year, farmers reported a 10–30% increase in yields—approximately an additional 3–5 tonnes in annual per-hectare yield.
For Junaidi, oil palm cultivation offered a way out of debt and poverty. Using a loan provided by CUKK, he bought around a hectare of land in 2015. Junaidi recently won the ‘Farmer of the Year Award’, an annual event organised by CUKK to recognise farmers who are sustainability practitioners and are inspiring others in their community to farm sustainably.
The yield from Junaidi’s farm used to be rather modest—1.5–2 tonnes per hectare. He joined the farmer field school in his village last year and became thoroughly aware of regenerative agricultural practices. These practices include timely fertilization, use of bio-inputs, better crop care and improved harvest planning through training sessions. By the end of 2025, the yield on his farm increased to 3.5 tonnes per hectare, and his income more than doubled.
With the rise in earnings, he is now able to finance his children’s education. From loading FFBs onto trucks as a labourer, Junaidi is now a proud owner of a truck that he uses to transport FFBs from his farm to the collection centre.
“Solidaridad and CUKK’s farmer field school has ensured that we no longer farm out of habit alone, but do so with knowledge and direction,” says Junaidi. “We have learned better practices, improved how we manage our plantations, and gained greater confidence. Today, our yields are higher, our costs are more controlled, and our farms are not just surviving—they are thriving. This is more than just training—it is a transformation that has secured better livelihoods and futures for us.”
The Solidaridad-CUKK partnership, built around these principles, has also grown in strength. Today, around 20,000-25,000 farmers in West Kalimantan are trained in regenerative agricultural practices every year.
Beyond Farms: Enterprise, Environment, Market
Even as oil palm farmers learnt about good agricultural practices, fluctuating market prices for FFBs, middlemen capturing a fair share of the income, and West Kalimantan’s remote location meant profits for farmers were hard to come by. Improving access to markets for farmers, therefore, became a priority issue for the partnership.
It is here that the role of palm oil cooperatives assumed greater significance. Instead of looking outward and bringing other cooperatives into the fold, the partnership strengthened the institutions that already existed in the CUKK network, such as Keling Kumang Agro (KKA) and Aliansi Petani Kelapa Sawit Keling Kumang (APKS KK – Keling Kumang Oil Palm Smallholders’ Alliance). Efforts were made to make the cooperatives more robust, inclusive and economically viable. In the process, nearly 5,000 farmers are trained in a year on record-keeping, business planning and more.
Cooperatives in the CUKK network now operate across the farm-level value chain. They run input shops, manage nurseries and other enterprises, and enable collective sales for farmers. This shift has opened up new revenue streams for farmers—from margins on input sales to profit-sharing models (for instance, 67% for cooperatives and 33% for farmer groups in nursery businesses). Harvests from around 22 groups (each with around 20 farmers) are aggregated and sold directly to mills. As a result, farmers linked to the cooperatives are earning around 20% more, compared to when they were not part of such groups.
Harvest collectivisation has also enabled farmers to eliminate the need for intermediaries. The mills, in turn, are receiving FFBs of an earmarked volume and quality according to their standards. This has led to improved bargaining power, price transparency and fair pricing. Farmers supplying to mills via cooperatives earn 100–200 IDR more per kg of FFBs than those who still rely on middlemen.
With shared learning in a collective, farmers are becoming environmentally aware, too. For every 100 hectares of oil palm plantations, 10% is reserved for maintaining high-conservation value areas. APKS KK has 795 RSPO-certified (Roundtable on Sustainable Palm Oil) and 499 ISPO-certified (Indonesia Sustainable Palm Oil) farmers, who manage around 1970.69 hectares of land. Their FFBs fetch competitive prices from the local oil mills, which often serve as Tier 3 suppliers to global FMCG companies. Thus, the compulsory purchase order produced from these FFBs enters the global supply chain.
“Previously, farmers operated individually and had no bargaining power. Through APKS KK, we have become a collective force—we have a better understanding of sustainability standards, are stronger in price negotiations, and are no longer dependent on middlemen,” says Akeng Rupinus, a representative of APKS KK.
The cooperative distributes 100% of the proceeds from the sale of the FFBs to these certified farmers.
“What we have witnessed in West Kalimantan is not merely an improvement in agricultural practices, but a systemic transformation driven through collaboration and partnership between Solidaridad and CUKK,” says Hilarius Gimawan, CEO of CUKK. “Independent smallholders are no longer positioned at the vulnerable end of the value chain. They have grown into informed decision-makers, organized producers and strong cooperative members.”
Agents of Inclusive Change
Around the oil palm ecosystem, the CUKK–Solidaridad partnership is now scripting change of a different kind—one that also involves women like Reni.
Besides working on the family’s oil palm plantation, Reni runs a home-based beadcraft business using a natural, plant-based material called Nyelik Batu. This material is biodegradable, easy to cultivate and culturally significant—traditionally believed to protect pregnant women and children from harmful spirits.
She began her business in 2020, during the first year of the pandemic. However, her enterprise remained small and informal. She sold only around 50 pieces per month of a rather limited product line (bracelets, necklaces, traditional attire, earrings and rosaries), generating approximately IDR 1,500,000 (75.46 euros) in monthly revenue. Her gallery’s location also did not provide it much visibility. Additionally, a lack of product innovation and structured access to markets hindered her efforts. The products held immense, unique, cultural and environmental value, but were virtually unknown beyond her immediate circles.
The turning point came in 2023. Reni is among the 403 women micropreneurs in West Kalimantan to be trained on financial management and entrepreneurship development under the Solidaridad-CUKK partnership. The financial literacy training module strengthened Reni’s capacity in bookkeeping, cost calculation and family financial planning.
“I used to think my handicrafts would only provide a small additional income. I never imagined I could lead or speak in front of others. The training changed my mindset and gave me confidence,” says Reni.
With improved financial management and better market exposure, Reni was able to reposition her business strategically. Her products are now promoted through exhibitions and village- and district-level events, as well as through institutional networks and broader customer channels. Her enterprise is benefiting from stronger brand recognition, diversified sales channels and more sustainable revenue growth.
The results are evident. Her monthly sales have increased from 50 pieces to approximately 200 pieces of greater diversity, raising her revenue to around IDR 6,000,000 (301.83 euros) per month. To manage increasing orders, Reni now employs two freelance workers during peak demand periods, directly contributing to local job creation.
Beyond growing her own business, Reni has become an active trainer, training 174 women in the making of accessories. She has also trained more than 100 women in craftsmaking and product innovation. Of those trained, approximately 70% have started side businesses—either individually or collectively. They are also innovating their own products. Her job as a trainer helps her earn around IDR 1,000,000 (50.30 euros) every month.
With her improved earnings, Reni can support her child’s education at university. Moreover, with access to finance through CUKK, she is able to expand her business by diversifying the product range.
“I truly hope this programme can continue and reach more women, so that many others can experience the same growth, opportunities, and benefits that I have received,” says Reni.
Even more impressive is the rise in her social stature. Today, Reni fulfills several roles in important capacities: as Head of Work Programme 2 of the sub-district family welfare group (PKK), as Secretary of the Eco-Agrotourism Community Group and as Coordinator for Beaf and Nyelik Batu Handicrafts. She confidently facilitates training sessions at the village and district levels, and is a recognized voice on women’s entrepreneurship in the region.
“What began in 2012 with 500 farmers adopting good agricultural practices has now grown to over 25,000 farmers practising regenerative agriculture, alongside several community-based micro-enterprises,” says Sumit Roy, Assistant General Manager, Palm Oil, Solidaridad Asia.
“West Kalimantan is a key oil palm-producing province in Indonesia and home to indigenous Dayak communities who depend heavily on the sector for their livelihoods. The partnership with CUKK demonstrates how long-term collaboration, rooted in trust and shared purpose, can drive meaningful transformation in smallholder livelihoods and in the oil palm landscape,” states Sumit.