Key Takeaways
- Abler Nordic, Temasek Foundation, Musim Mas, and Livelihoods Funds have launched SOPRI to support smallholder oil palm replanting in Indonesia.
- The pilot project targets 400 smallholders in Sumatra, with goals to scale to over 20,000.
- Musim Mas provides technical assistance to help farmers meet sustainability certification requirements.
- The initiative promotes deforestation-free production and explores agroforestry as a climate adaptation strategy.
- Abler Nordic’s Climate Smart Fund coordinates financial operations with support from public and philanthropic partners.
A New Initiative Supporting Smallholder Replanting
The Sustainable Oil Palm Replanting in Indonesia (SOPRI) project is a new partnership between Abler Nordic, Temasek Foundation, Musim Mas, and Livelihoods Funds. It is designed to help smallholder farmers replant aging oil palms and avoid unsustainable land expansion practices.
With over 40% of Indonesia’s oil palm land cultivated by smallholders, many face declining yields due to aging trees. Limited access to affordable finance has led some to clear forests for new plantations. SOPRI aims to reverse this trend by providing structured replanting support, credit access, and training to improve both livelihoods and environmental outcomes.
Pilot Phase Targets 400 Smallholders in Sumatra
The initial phase of SOPRI will assist 400 smallholders managing a combined 400 hectares of land in Sumatra. These farmers will receive:
- Long-term replanting loans
- Financial literacy education
- Support for land titling and certification
- Village-level land use planning
In exchange, participating smallholders commit to avoiding deforestation, with compliance monitored through satellite imaging and field visits.
Musim Mas to Support Technical and Market Access
As part of its role in the SOPRI project, Musim Mas is providing technical support to farmers aiming to achieve sustainable palm oil certification. The company’s involvement includes advising on best agricultural practices and improving access to certified markets.
“This initiative is not just about financial support; it is about empowering smallholders with the knowledge and resources they need to implement sustainable practices,” said Rob Nicholls, General Manager of Projects and Partnerships at Musim Mas.
Blended Finance Model Led by Abler Nordic
SOPRI is part of Abler Nordic’s Climate Smart Fund, an investment initiative supported by the Norwegian Ministry of Climate and Environment. The fund brings together public, private, and philanthropic capital to support sustainable agriculture.
Temasek Foundation contributes to the fund by providing catalytic capital that de-risks loans and encourages private sector lending to smallholders. This blended finance model is central to making replanting affordable and scalable.
Partners Aim to Scale to 20,000 Smallholders
Following the pilot phase, the project aims to expand its support to over 20,000 smallholders in Indonesia. Abler Nordic is seeking to increase the fund’s size from USD 10 million to USD 40 million to support future growth.
“The results so far demonstrate that we have the right model and risk mitigation to expand the Climate Smart Fund and create long-term, meaningful change,” said Arthur Sletteberg, Managing Director of Abler Nordic.
Agroforestry and Climate Resilience Components
Beyond replanting, SOPRI is also piloting integrated agroforestry systems, combining oil palms with shade trees and complementary crops. This model helps:
- Improve soil health
- Moderate local microclimates
- Strengthen long-term crop resilience
Musim Mas continues to support these innovations by advising on implementation and field-level adoption strategies.
Collaborative Approach with Local Implementation Partners
Project operations are managed by Abler Nordic, working with local organizations such as Koltiva and Bank Amar. Musim Mas and Livelihoods Funds contribute expertise in sustainable agriculture and certification processes.
“Through this partnership, we aim to empower smallholders with the technical support and advisory needed to transition to sustainable and resilient farming systems,” said Sébastien de Royer of Livelihoods Ventures.
“Temasek Foundation is committed to collectively building this Public-Private-Philanthropic partnership with Abler Nordic, Livelihoods Funds, and Musim Mas in Nature-based Solutions,” added Heng Li Lang, Head of Climate and Liveability at Temasek Foundation.
