SAFE Integrated Development Partnership with the Private Sector (iDPP) Project with Olam Agri in Indonesia’s Lampung Province

On 10 September 2024, the Sustainable Agriculture for Forest Ecosystems (SAFE) project signed an Integrated Development Partnership with the Private Sector (iDPP) agreement with Olam Agri. Through the cooperation, the project aims to improve the livelihoods of smallholder farmers and protect vital forest ecosystems by promoting sustainable natural rubber production, aligning it with international market requirements in Lampung province, located in the southern tip of Sumatera Island of Indonesia. This cooperation will be implemented up to September 2026.

SAFE Project in Indonesia

SAFE project was commissioned by the German Federal Ministry of Economic Cooperation and Development (BMZ) with co-funding from the European Union (EU) and the Netherland’s Ministry of Foreign Affairs and is implemented in 10 partner countries, including Indonesia.

In Indonesia, SAFE project is implemented together with the Ministry of National Development Planning (Kementerian Perencanaan Pembangunan Nasional/Bappenas) and is implemented in Lampung, West Kalimantan, and Central Sulawesi provinces. SAFE project partners with private sector through iDPP. Together, we co-create intervention and combine out resources, expertise, and experience to ensure sustained impact beyond the project’s timeframe.

Why Lampung?

Lampung is a key area for various Indonesian prime agricultural commodities, including natural rubber. Despite its vast forest area, this province faces significant deforestation threats from unsustainable agricultural practices. As such, SAFE project works with relevant players in the supply chain, including private sector and Non-Government Organizations (NGOs) for ensuring an inclusive transition to sustainable and deforestation-free production.

Key Components of the Project

There are four main elements of the iDPP cooperation implemented by SAFE and Olam Agri in Lampung:

1. Traceability and Data Management
   Though the partnership, the cooperation focuses on ensuring traceability from farms to table by mapping farmer plots and integrating this geolocation data into a traceability system. Additionally, it facilitates the legality for farmers through Cultivation Registration (Surat Tanda Daftar Budidaya/STDB), ensuring that all necessary legal requirements are met.
2. Boosting Productivity and Sustainability
   The cooperation aims to enhance crop yields by providing training and technical assistance to smallholder farmers. Additionally, it encourages diversification, intercropping, and agroforestry practices to minimize environmental impact and promote sustainable farming. This two-pronged approach enables the cooperation to be a model for responsible agricultural development.
3. Strengthening Farmer Organizations
   Farmer organizations play a critical role in ensuring collective success. The cooperation supports the development of farmer groups for better organization and advocacy. Consequently, helping farmers negotiate fair prices, access financing, and share resources. Moreover, the cooperation aims to facilitate joint planning and knowledge sharing within these groups as well as with Olam Agri on best practices in sustainable farming, helping them align with broader cooperation goals and to foster an inclusive business partnership between smallholders and private sector.
4. Promoting High Conservation Value (HCV) Areas
   Last but not least, the cooperation integrates HCV management into agricultural practices. By doing so, we promote protection of biodiversity of the ecosystem and prevent adverse environmental impacts. The cooperation also works with stakeholders to create conservation strategies, aligning HCV protection with sustainable natural rubber production in district and provincial development plans.

Impact and Future Prospects

The collaboration with Olam Agri, local governments, and farmer organizations highlights the project’s inclusive approach. As it progresses, the SAFE project is expected to significantly benefit both the environment and local communities, setting a benchmark for sustainable practices in the natural rubber industry and beyond.

This initiative not only aims to safeguard the environment but also to create a sustainable future for smallholder farmers in Lampung. By combining resources and expertise from both the public and private sectors, the SAFE iDPP cooperation is paving the way for a more sustainable and prosperous agricultural landscape.