Indonesia’s 40% Palm Oil Smallholders Face Traceability and Certification Gaps as EUDR Compliance Looms
- Daniel Prasetyo
- 3 days ago
- 4 min read
40% of Indonesia’s palm oil land is managed by smallholders, but most are unregistered and untraceable (Mongabay, 2023).
Digital traceability and certification readiness are increasingly crucial as producers prepare to meet RSPO and ISPO standards and comply with the EUDR, especially amid recent news that, while discussions on a possible delay continue, no official postponement of the December 2025 deadline has been confirmed.
Certification and traceability are now the new passport to global markets, and digital tools such as KoltiTrace and KoltiSkills are helping smallholders prepare for ISPO and RSPO compliance.
Koltiva enables transparency and inclusion through its KoltiTrace platform, supporting the Sustainable Landscape Platform Indonesia (SLPI) and Multi-Stakeholder Forum (MSF) with UNDP, SECO, and local governments.
Jakarta – More than 40% of Indonesia’s oil palm area is cultivated by independent smallholders, yet most remain outside formal traceability and certification systems. (Mongabay, 2023). This disconnect limits their access to sustainable markets and exposes the entire supply chain to compliance risks. As global importers tighten sustainability standards through measures such as the EU Deforestation Regulation (EUDR) and environmental scrutiny intensifies, Indonesia faces a pivotal task: integrating millions of smallholders into transparent, traceable, and inclusive supply chains that can sustain its global competitiveness. Digital traceability and certification readiness are therefore becoming essential, particularly as discussions about a potential EUDR deadline delay continue, although no official postponement of the December 2025 timeline has been confirmed (Koltiva, 2025).
Globally, smallholder producers managing less than 50 hectares of oil palm, produce up to 30% of crude palm oil and manage nearly one-third of total oil palm area (Chain Action Research, 2021; RSPO, 2022). Yet in Indonesia, only 7% of certified mills currently source from independent smallholders, and fewer than 1% of those farmers hold RSPO or ISPO certification. In Riau Province, one of the top palm oil-producing regions in Indonesia, independent plantations span 1.61 million hectares, but only 0.48% (7,798 ha) are RSPO-certified which is a clear indicator of the inclusion gap.
This data gap represents more than a certification challenge and exposes a systemic issue of visibility and inclusion. Unregistered producers remain excluded from both sustainability programs and potential downstream opportunities, while companies face compliance risks and market barriers.
Digital Traceability: From Compliance to Opportunity
Legality and traceability have become non-negotiable for access to premium export markets. Under the EUDR and similar frameworks, producers must demonstrate plot-level geolocation, verified land legality, and full traceability to plantation (TTP). For Indonesia’s dealer-heavy supply chains, this demands verified producer registration, transparent transactions, and an unbroken chain of custody from farm to mill.
“We’ve seen how digital tools and collaborative models can transform compliance from a burden into an opportunity. But lasting impact can only happen when all stakeholders work together, ensuring no smallholder is left behind in this transition to sustainable supply chains,” said Jusupta Tarigan, Senior Program Manager at Koltiva.
Koltiva, a Swiss-Indonesian AgriTech company, has developed the KoltiTrace, a digital traceability platform that maps producers, monitors farm-level data, and verifies transactions in real time. In Indonesia, Koltiva’s traceability system has empowered more than 2,600 businesses across the palm oil supply chain and registered over 178,000 producers, enabling greater transparency and inclusivity at every stage of production. Building on this impact, Koltiva has also collaborated with the United Nations Development Programme (UNDP), the Swiss State Secretariat for Economic Affairs (SECO), Swisscontact, and local governments to strengthen producer empowerment through data-driven decision-making and inclusive supply chain management, as showcased in the Multi-Stakeholder Forum (MSF) Dashboard in Aceh Singkil (InfoSawit, 2025).
Collaborating Through SLPI and MSF: Building the Digital Backbone of Sustainable Palm Oil
Koltiva promotes transparency and inclusion through support and involvement in the Sustainable Landscape Platform Indonesia (SLPI) with its Multi-Stakeholder Forum (MSF) initiative that unites government agencies, private companies, NGOs, and farmer groups to align sustainability goals. Through these collaborations, Koltiva supports integrated data systems, enhances certification readiness, and scales sustainable palm oil production in key producing districts.
A key outcome is the MSF Dashboard, powered by KoltiTrace MIS, which enables regional governments such as the Aceh Singkil District to coordinate actions, monitor sustainability KPIs, and publish transparent progress reports. With participation from nine NGOs and eight government agencies, the dashboard fosters accountability and investor confidence while improving productivity and reducing deforestation risks.
“Companies across Indonesia are adopting various technology tools to meet sustainability standards and integrate them into their value chains. Digital traceability is not just a compliance tool, but it’s the foundation for economic resilience. By empowering smallholders with data, we create visibility that drives value, transparency, and access to premium markets,” said Ainu Rofiq, Koltiva’s Co-Founder.
Industry-wide collaboration remains essential to close the data gap that keeps millions of producers invisible. By combining verified farm-level data, digital traceability, and certification support, Indonesia can strengthen its global market position while ensuring smallholder prosperity. The government recognizes that integrating smallholders through data and certification aligns with national priorities for competitiveness, food security, and downstream industry growth.
“The government continuously strives to enhance the competitiveness of Indonesia’s palm oil sector through the implementation of the ISPO regulation. We appreciate this multistakeholder initiative that supports our national agenda for sustainable palm oil production, food self-sufficiency, and downstream development, including assistance for local governments and data collection of smallholder farmers,” said Moch. Edy Yusuf, Assistant Deputy of State-Owned Enterprises, Development on Manufacturing, Agro, Pharmacy, and Health, Coordinating Ministry of Economic Affairs, Republic of Indonesia during Bincang & Tanggap Sustainable Landscape Program Indonesia (SLPI) Webinar, organized by UNDP, with the theme “Driving Sustainable Growth in Palm Oil Through Landscape Innovation and Downstream Opportunities”, showcasing the achievement of the Multi-Stakeholder Forum (MSF) Dashboard for the Sustainable Landscape “LASR” (Leuser Alas-Singkil River-basin) project and its plan in supporting the 2024-2026 Sustainable Palm Oil Governance initiative. As the global conversation on deforestation and supply chain transparency evolves, Indonesia has an opportunity to lead through inclusion. By 2030, the nation could unlock billions in compliant exports—if every actor, from government to private sector to farmers, commits to bringing invisible producers into the light.
About KOLTIVA
Offering human-centered technology and boots-on-the-ground solutions that digitize agribusinesses and help smallholder producers transition to sustainable practices and traceable sourcing, KOLTIVA is recognized as the leading global sustainable agriculture and supply chain traceability company. As a global technology provider, it constructs ethical, transparent, and sustainable supply chains, assisting enterprises in fortifying their resilience and transparency. The company helps businesses and their suppliers comply with ever-changing regulations and consumer demands worldwide with traceability solutions. Operating in more than 94 countries and fortified by a network of customer support offices in 21 countries, KOLTIVA is committed to supporting over 19,000 enterprises in establishing transparent and robust supply chains while empowering over 2,000,000 producers to increase their annual income. www.koltiva.com
Press contact KOLTIVA
Daniel Prasetyo
Head of Public Relations & Corporate Communications
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