REA Empowers 600+ Smallholders in Indonesian Borneo for EUDR Compliance and RSPO Certification with KOLTIVA

SHINES empowers 600+ smallholders in Indonesian Borneo with EUDR compliance tools, RSPO certification support, and traceable supply chains.

TANGERANG SELATAN, JAKAR, INDONESIA, July 16, 2025 /EINPresswire.com/ -- PT REA KALTIM PLANTATIONS (REA), a leading palm oil producer in East Borneo (Kalimantan), continues to scale its SHINES (SmallHolder INclusion for Ethical Sourcing) programme, aiming to enhance smallholder livelihoods through RSPO certification and European Union Deforestation Regulation (EUDR) compliance. Launched in October 2024, SHINES brings together corporate partners to promote sustainable, inclusive, and traceable supply chains.

REA, a subsidiary of R.E.A. Holdings PLC (UK), has operated in Indonesia since 1991 with a strong commitment to sustainability, forest conservation, and inclusive palm oil production. Their operations span plantations, mills, kernel crushing plants, and approximately 18,000 hectares of conservation forest.

"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."

The programme supports over 600 independent smallholders in Kutai Kartanegara, working with cooperatives such as Koperasi Perkebunan Belayan Sejahtera, Gotong-Royong, Tunas Harapan, Bina Wana Sejahtera, and Karya Penoon. These cooperatives receive training, technical support, and market incentives for meeting EUDR and RSPO standards, helping secure long-term access to international markets.

KOLTIVA Supports SHINES with Mapping and Traceability Expertise

REA partnered with KOLTIVA, a Swiss-Indonesian agritech company, to deliver technical support for polygon mapping, farm assessments, and the deployment of KoltiTrace, its digital traceability platform. This system enables legal land verification and ongoing monitoring aligned with RSPO and EUDR.

"KOLTIVA’s work with REA underscores our shared commitment to building a resilient and sustainable palm oil supply chain," said Manfred Borer, CEO and Co-Founder of KOLTIVA. "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."

KOLTIVA is currently rolling out KoltiTrace across 10 cooperatives in East Kalimantan, aiming to map and verify farm polygons. This addresses traceability gaps and sets the groundwork for verified compliance.

According to Palm Oil Monitor in 2023, 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 only about 1% are “cleanly and clearly” certified, meaning they meet traceability and legality requirements under EUDR. Key challenges include lack of geolocation data, unclear land tenure, and limited access to digital systems. Without urgent action, many smallholders risk exclusion from EU markets.

The SHINES programme directly responds to this readiness gap by providing smallholders with the tools and support necessary for traceability, certification, and compliance. KOLTIVA’s mapping efforts and the KoltiTrace rollout represent tangible steps toward closing these gaps.

In the next phase, KOLTIVA will implement a segregation feature through the KoltiTrace FarmGate system. This enables suppliers to distinguish between EUDR-compliant and non-compliant Fresh Fruit Bunches (FFB) at the point of delivery. The European Commission emphasizes that segregation is non-negotiable: commodities with verified compliance must remain physically separate from those without. Failure to ensure segregation may result in regulatory breaches, restricted market access, and reputational risks.

Beyond Compliance: Forest Protection and Livelihoods

SHINES also delivers landscape-level impact. The programme contributes to protecting up to 10,000 hectares of forest areas, supports biodiversity corridors, and enhances livelihoods across six target villages. Structured to ensure equitable value distribution, SHINES enables smallholders to benefit from price premiums linked to certified sustainable palm oil.

"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.

Through this collaboration, REA and KOLTIVA demonstrate how targeted interventions, digital innovation, and shared responsibility can build a more inclusive and sustainable future for palm oil production in Indonesia and beyond.

Daniel Prasetyo
KOLTIVA
+ +628111671919
daniel.prasetyo@koltiva.com
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