SNV Netherlands Development Organisation

Consultancy Agreement CA007/SNV/202405

IDR. 409.700.000

June 1, 2024 – May 31, 2025

Description

The Biodiverse and Inclusive Palm Oil Supply Chain – BIPOSC project is an initiative of a long-term (10 years) program, initiated by SNV in partnership with The Livelihoods Fund for Family Farming (L3F) and PT Musim Mas with investments from Mars Incorporated, Danone, and L’Oréal. The project aims to help 2,500 oil palm smallholders achieve a green transition in Sumatra Island, Indonesia, focusing on developing a transparent and deforestation-free supply chain. Through the development of locally adapted oil palm agroforestry models, regenerative agriculture, and biodiversity enhancement.

Income Generating Activity (IGA) is one of the BIPOSC Project’s efforts in creating a regenerative agriculture model as a sustainable and healthy agricultural system by utilizing ecological principles and biodiversity. The development of IGA products will be encouraged through the strengthening of Cooperatives/Associations and as managers of seed funds to be accessed later by 8 women’s business groups and the younger generation in 8 BIPOCS target villages, in developing IGA products. In addition, the business groups will be strengthened in technical aspects of production, business planning, business literacy and finance, and gaining market access.

At the end of the program, this IGA product development assistance is expected to contribute to:

  1. Increased the farmer’s income through the alternative business that will support the process of replanting in the oil palm plantation.
  2. Improvement the welfare of the grower through the alternative economy (Income Generating activity) so they could have a sustainable oil palm plantation.
  3. Strengthening the capacity of the association to use the revolving fund for the other groups who have the potential to carry out the income-generating activity.

Funding

This program is supported by SNV Netherlands Development Organisation, period from June 1, 2024 – May 31, 2025, with a total funding support of IDR. 409.700.000,-  work location in Labuhanbatu, Medan, Pekanbaru, dan Riau.