Kao launches program to help small palm oil farmers in Indonesia

15, Oct. 2020

Image by tk tan from Pixabay
Image by tk tan from Pixabay

JAKARTA, NNA - Japanese consumer goods maker Kao Corp. is launching a new initiative to assist small palm oil farmers in Indonesia improve their yields in a bid to establish a sustainable supply chain.

Kao said in a statement Wednesday it is partnering with local palm oil processor and exporter Apical Group and Asian Agri, one of Asia's biggest palm oil producers, to help palm oil smallholders.

Under the initiative called the SMallholder Inclusion for better Livelihood & Empowerment, or SMILE, Kao and its two Indonesian partners aim to support about 5,000 small-scale operators in the provinces of North Sumatra, Riau and Jambi by 2030.

Kao said the three-way collaboration will help boost productivity, acquire international certification and secure sales premiums from selling certified palm oil while providing them with safety gear such as helmets and gloves.

The Japanese firm imports palm oil and palm kernel oil from Indonesia to make detergents and also sells imported oil as a raw material. (NNA/Kyodo)