REA Empowers Over 600 Smallholders in East Kalimantan to Produce Sustainable Palm Oil with EUDR Compliance and RSPO Certification, Supported by KOLTIVA

Executive Summaries

• REA initiated SHINES programme to support over 600 independent smallholders in Kutai Indonesia with RSPO certification and EUDR compliance through traceability and farm assessment tools.

• KOLTIVA’s KoltiTrace platform map and verify farm polygons across 10 cooperatives in East Kalimantan as a part of its support for SHINES programme.

• The programme protects up to 10,000 hectares of forest and supports 6 target villages through biodiversity and livelihood initiatives and will allow smallholders to receive market incentives, digital training, and partial payment support to meet EU regulations and secure long-term market access.

Jakarta, 14 July 2025 – PT REA KALTIM PLANTATIONS (REA), continues to advance its SHINES (SmallHolder INclusion for Ethical Sourcing) programme to improve the livelihood of smallholders through RSPO certification and European Union Deforestation Regulation (EUDR) compliance. Launched in October 2024, SHINES brings together corporate partners to drive transformative changes and foster shared responsibility across the value chain.

Table of Index:

• Executive Summaries

• KOLTIVA Supports SHINES with Mapping and Traceability Expertise for Sustainable Palm Oil

• Beyond Compliance: Landscape Impact and Livelihoods

• About PT REA KALTIM PLANTATIONS

• About KOLTIVA

• Press contacts

REA is a leading palm oil producer committed to sustainable, traceable, and inclusive production since 1991. A subsidiary of R.E.A. Holdings PLC, listed on the London Stock Exchange, REA operates in Balikpapan and East Kalimantan, Indonesia. Their operations span oil palm plantations, palm oil mills, and kernel crushing plants, complemented by forest conservation efforts covering approximately 18,000 hectares. Through initiatives like the SHINES programme, REA aims to enhance RSPO-certified supply chain compliance, improve productivity, and secure long-term market access for smallholders, aligning with evolving international regulations such as the EUDR.

"Smallholder inclusion is key to sustainable development,” said Bremen Yong, Group Chief Sustainability Officer of REA. “SHINES presents a strong business case that brings together stakeholders across the value chain to drive transformative change, improve livelihoods, and strengthen supply chain integrity," added Bremen.

Through targeted interventions, REA ensures that producers comply with international regulations and gain improved access to economic opportunities. Smallholder cooperatives in Kutai Kartanegara, namely Koperasi Perkebunan Belayan Sejahtera, Gotong-Royong, Tunas Harapan, Bina Wana Sejahtera, and Karya Penoon are provided with training, technical support, and market incentives for those meeting EUDR requirements and industry standards, ensuring long-term compliance and market access.

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KOLTIVA Supports SHINES with Mapping and Traceability Expertise for Sustainable Palm Oil

As part of the programme’s traceability and compliance component, REA engaged KOLTIVA, a Swiss-Indonesian agritech company, to provide technical support for polygon mapping, farm assessments, and the deployment of its traceability platform, KoltiTrace. This comprehensive solutions will facilitate more than 600 independent smallholders in ensuring full compliance with EUDR requirements.

“KOLTIVA’s work with REA underscores our shared commitment to building a resilient and sustainable palm oil supply chain. By integrating farm assessments, technological adaptation through KoltiTrace and training on Good Agricultural Practices (GAP), we are enabling producers to meet the evolving regulatory landscape while improving their long-term economic prospects,” said Manfred Borer, CEO of KOLTIVA. Its approach combines innovative digital solutions with on-the-ground interventions, ensuring that producers can seamlessly navigate the complexities of global sustainability standards.

Related to this project, KOLTIVA is currently rolling out its KoltiTrace platform across 10 cooperatives in East Kalimantan, aiming to map and verify farm polygons. This digital traceability infrastructure provides the baseline for legal land verification and ongoing monitoring required under RSPO and EUDR standards.

Indonesia’s smallholder readiness for EUDR remains limited. Roughly 41% of Indonesia’s oil palm plantations—around 6.7 million hectares—are managed by independent smallholders, yet studies show only 1% of these smallholders are “cleanly and clearly” certified, meaning they meet traceability and legality requirements aligned with the EUDR. Major obstacles include inadequate geolocation data, unclear land tenure, and lack of digital systems. Without urgent action, many smallholders face exclusion from EU markets under the new regulation (Palm Oil Monitor, 2023 ).

The SHINES programme directly responds to this readiness gap by providing smallholders with the tools and support necessary to achieve traceability, certification, and compliance. It represents a tangible step toward closing these gaps, offering smallholders a viable pathway to meet regulatory requirements and secure long-term market access.

In the next phase, KOLTIVA will support the implementation of a segregation feature requested through the KoltiTrace FarmGate system update. This will allow suppliers to distinguish between EUDR-compliant and non-compliant Fresh Fruit Bunches at the point of delivery. This feature responds to a core requirement of the EUDR, which mandates that commodities from land plots with verified compliance must remain physically separated from those without supporting evidence (European Commission, n.d.).

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Beyond Compliance: Landscape Impact and Livelihoods

As regulatory frameworks like the EUDR become more stringent, initiatives like SHINES play a crucial role in ensuring that producers are well-prepared to meet evolving compliance demands. Readiness for EUDR compliance significantly improves producer access to premium markets, highlighting the strategic importance of such programs in securing long-term sustainability and economic resilience.

Beyond compliance, SHINES also supports broader landscape-level outcomes. This includes protecting up to 10,000 hectares of forest areas beyond the concession, improving biodiversity connectivity, and launching livelihood programmes across six target villages. The programme is also structured to ensure fair value distribution across the supply chain by supporting price premiums for certified palm oil from smallholders.

“The SHINES programme has a transformational impact on smallholder livelihoods and sustainable palm oil production by bridging the gap between producers and global market demands,” said Jusupta Tarigan, Impact Program Manager Palm Oil, KOLTIVA.

About PT REA KALTIM PLANTATIONS

PT REA KALTIM PLANTATIONS (REA) is a leading palm oil producer committed to sustainable, traceable and inclusive palm oil production since its establishment in 1991. A subsidiary of REA Holdings PLC (“REA Group”) listed on the London Stock Exchange, REA operates in Balikpapan and East Kalimantan, Indonesia. Our commitment to sustainable development in our operations drives our efforts in climate action, forest conservation, and supporting smallholders while delivering high-quality palm oil products.  The company manage palm oil mills, kernel-crushing plants and oil palm plantations. Conserving up to 18,000 hectares of forests and protected areas, it has been an RSPO-certified member since 2007 and achieved RSPO certification for all of its palm oil mills in 2023. REA has two methane capture facilities that generate electricity for over 99% of its operations and employee housing, as well as supply power to the villages in the vicinity of the group’s operations. www.rea.co.id

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 65 countries and fortified by a network of customer support offices in 20 countries, KOLTIVA is committed to supporting over 19,000 enterprises in establishing transparent and robust supply chains while empowering over 1,900,000 producers to increase their annual income. www.koltiva.com

Press contacts

Daniel Prasetyo Head of Public Relations & Corporate Communication +62 8111 671 919  daniel.prasetyo@koltiva.com

Ariza Zainudin Sustainability Communications & Programme Manager +62 8118 777756 ariza.atiqah@rea.co.id