Indonesia

The context

Deforestation

The European Union is committed to supporting partner countries in an inclusive transition to sustainable and legal agricultural production in line with national and international regulations.

Local context

To facilitate the transition, the Government of Indonesia is integrating sustainable agriculture into development planning and establishing tools to aid in monitoring sustainability progress in the plantation sector at jurisdictional level.

Biodiversity

Indonesia is committed to a green economy and forest conservation, as outlined in the National Mid-Term Development Plan 2025-2029 and associated legal frameworks.

Agriculture

Millions of Indonesians rely on agriculture as their main livelihood, yet agriculture still faces significant sustainability challenges.

Decoupling Agriculture from Deforestation

Making the transition to non-deforestation and sustainable agriculture is challenging, particularly for smallholder farmers who face barriers to adopting sustainable practices. Despite the obstacles, complying with deforestation-related trade requirements offers opportunities for improved and more formalised trading relationships, incentivising sustainability and supporting smallholders’ livelihoods.

Approach

In Indonesia, the SAFE project cooperates closely with the private sector and Civil Society Organizations (CSOs) promoting sustainability in palm oil, natural rubber, and cocoa commodities. SAFE has fostered equitable partnerships between smallholders and supply chain actors. Through co-creating solutions and leveraging investment from private sector, the SAFE project showcases models for an inclusive transition to sustainable and legal, production.

Furthermore, identified models address gender gaps in sustainable supply chains. The models promote inclusive practices empowering women and vulnerable groups to participate in decision-making and resource management. SAFE contributes to the exchange of knowledge between regions and countries so that successful models can be applied across Indonesia and beyond.

Commodities SAFE is working on in Indonesia

Approach

Commodities SAFE is working on in Indonesia

Activities

Improving Livelihoods and Agricultural Practices

Strengthening farmer organisations promotes equality for both men and women in the cocoa, rubber, and palm oil sectors. Capacity building in Good Agricultural Practices (GAP) equips farmers with much needed skills, while village-level conservation efforts safeguard High Conservation Value (HCV) and High Carbon Stock (HCS) areas. Additionally, fostering inclusive business partnerships helps create resilient, sustainable farming communities, improving livelihoods and promoting environmental protection.

Private Sector Engagement through SAFE Challenge

Currently, the SAFE project works with seven partnerships of private sector, smallholders, and civil society in West Kalimantan, Lampung, and Central Sulawesi. These cooperations will run until 2026.

Promoting Sustainability and Compliance

Efforts focus on advancing traceability and legality through smallholder mapping and business licensing, the Sustainable Jurisdiction Indicators (SJI) platform and a national data management system. These tools help to monitor and steer the sustainability transition at both the district and national levels.

Knowledge Sharing and Regional Exchanges

Regular national and regional exchanges are facilitated to share knowledge, best practices, and innovative approaches among stakeholders, enhancing collective learning and collaboration.

Publications

Technical Procedures and Collaboration of Parties in Accelerating the Smallholder Registration with STDB

This guide offers a structured and accessible overview of the electronic Cultivation license (e-STDB) registration process for smallholders cultivating commodity crops and showcases opportunities for cooperation and data exchange between…

Challenges & Opportunities for Smallholder in Indonesia and Malaysia’s Palm Oil, Rubber and Cocoa Sectors

The European Union Regulation on Deforestation-free Products (EUDR) poses significant challenges for Indonesia’s and Malaysia’s key commodities—palm oil, cocoa, and rubber—primarily impacting the industry’s smallholder backbone. Compliance demands substantial investment…