In Sime Darby Plantation’s Indonesian operations, there are more than 50,000 hectares of oil palm planted under the outgrower scheme. This scheme is intended to provide local communities with the means to raise their standard of living. There are two types of outgrower schemes under Minamas Plantation:
Plasma Scheme: Under this scheme, Minamas Plantation assists participants to be independent growers of oil palm by undertaking land preparation, planting and maintenance for at least 48 months, before handing over the scheme to be managed on their own. The company works closely with local farmers and communities to develop the plantation and undertake to purchase the fresh fruit bunches (FFB) produced. While waiting for the plantation to mature, these smallholders are employed by the company and educated on the finer aspects of oil palm cultivation.
Smallholder Cooperatives Scheme: Also known as ‘Kredit Koperasi Primer Anggota’ (KKPA), the scheme is a cooperative scheme where land belonging to the smallholders meant to be developed as oil palm plantation is held by the cooperative. Individual smallholders are allocated share certificates for two hectares. Smallholders receive income via dividends issued from the profits made by the cooperative and earned wages.