From Old Trees to Higher Yields: Replanting that Works for Indonesian Smallholders

Available in English, French, Spanish, Portuguese and Chinese

Unpacks People’s Palm Oil Replanting as a finance-plus-field-support model that combines grants, Kredit Usaha Rakyat (KUR) credit, accredited seedlings, and cooperative batching tied to ISPO to raise yields without expansion.

This approach is particularly relevant in a country where palm oil often drives deforestation. By increasing yields on existing land, the model reduces the incentive for forest conversion. Moreover, linking to ISPO ensures a sustainability standard. But challenges remain: the upfront cost of replanting is high; credit risk must be managed carefully; and smallholders may lack bargaining power in cooperatives, so governance and capacity strengthening are vital.

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