To ensure local food security, as part of the FPIC process, participatory SIA and participatory land-use planning with local peoples, a range of food provisioning options are considered. There is transparency of the land allocation process. The intent is to ensure food security and land use choices are considered as part of the formal FPIC process, prior to new developments. The commitment towards enhancing food security applies to our direct and indirect suppliers.

Our Group ensure affected local communities understand that they have the right to say ‘no’ to operations planned on their lands before and during initial discussions, during the stage of information gathering and associated consultations, during negotiations, and up until an agreement with our management is signed and ratified by all relevant local peoples. Efforts will be made to consider population dynamics.

Plasma Schemes / Outgrowers Scheme
The Indonesian Government’s objective is to ensure the establishment of Plasma Projects equivalent to 20% of a Company’s planted area.

At our Indonesian Plantations, we are actively involved with a government project known as the Plasma Scheme, designed to assist smallholders to become independent plantation growers.
Under the Plasma Scheme, UP helps smallholders to develop their land, including land preparation, for cultivation of oil palms. Once developed, the plantation is managed by the Company for one cycle after which it will be handed over to the smallholder for self-management. During the first cycle, proceed from the Plasma-areas minus development cost, is paid to the farmers by the Company.

We expect the scheme to provide more opportunities for the smallholders and help alleviate poverty. With this programme, we hope to steer them away from illegal logging, as well as slash-and-burn activities that can have a huge negative impact on environment. In the early years of plantations development, before the oil palm trees reach maturity, the livelihood of smallholders is supported through employment by the Company.

The Company’s internal Plasma team has taken over the responsibility of the various plasma projects from our external plasma consultant Mr. Rudolf Heering who has retired in August 2015. Further progress has been made during 2018 with more than 31.23Ha of new plasma areas having been planted.

As of 31st December 2018, a total of 1,316.36Ha of Plasma have been developed for 804 smallholders and another additional 618.99Ha is expected to be provided and developed for the communities surrounding the Company’s properties during 2019 to 2020.

Amongst the 804 smallholders, all of them are directly supported by the Company. Partnership with the local communities is crucial to achieve success in Indonesia and it is therefore of utmost importance that the local communities also benefit from UP’s development.
Please click here to view the Map on Plasma Smallholders under PTSSS/United Plantations Berhad.

Please click here to view the Map on Plasma Smallholders under PTSSS/United Plantations Berhad

Discussion on land allocation for Plasma smallholders

1100 hectares of Plasma areas have been established since 2006.
Targeted to archive 1700 hectares by 2018.

Fruit Orchard

In Sg. Erong Estate, an orchard with local fruits trees are established for employees and residents’ consumption. The Company also plants coconut palms and fruit trees in the workers quarters for their access. Residents are encouraged to plant vegetables at their backyard.

A panoramic view from 2018 of an orchard planted with local fruits trees at Sg. Erong Estate.


Progress of fruits trees planted in office and labour quarters compound of Sungei Chawang Estate during 2017.

In addition, the Company facilitates the purchase of rice and sugar at wholesale price for the workers. Cooking oil is supplied to the workers at subsidized rate.

Issuance of rice, sugar and cooking oil to workers

Monthly night markets are held in the respective estates where residents have access to fresh sundry goods at competitive prices.