The Indonesian authorities have mandated that at least 20% of newly planted areas acquired are to be reserved for the benefit of the smallholder co-operative scheme known as ‘Plasma’. In compliance of this, the Group incorporates such smallholder development in parallel with our own developments.
A Plasma Office in Kalimantan
AEP is commited to support all our smallholders, including plasma/scheme as well as independent smallholders wherever possible. As of 2018, the Group has a total of 5,795 Ha of land compensated for Plasma development across Sumatra and Kalimantan, of which 3,181 has been fully planted. More development is being planned in stages. To assist in the development, AEP has provided corporate guarantees of over U$ 16 million to local banks for these cooperatives to raise loans. The Group also assisted in the legal process of obtaining appropriate and clear land certification for the farmers.
Plasma Participants at PT ELAP
Plasma Participants at PT HPP
Apart from developing the Plasma schemes, AEP recognises its obligations and responsibilities towards the wider farming communities. The Group supported the Kas Desa village development programme to supplement the livelihood of villagers. Initial aid and seed capital for example, are provided to villagers to initiate sustainable community programmes such as cattle rearing, fish ponds, and fruit orchards. Certain key infrastructures were also developed to improve the living conditions in the villages. This mainly comes in the form of bridges and external roads, of which 400 km has been constructed by the Group so far.
Community Livelihood Support
Community Tree Planting
AEP is continuously mindful of the need for food security among surrounding villagers and are commited to assist surrunding communities in their efforts to diversify food sources . Steps to mitigate the impact on food security include ensuring that the rivers are always protected and free from pollutants. This is especially important in areas where local communities depend on the rivers for fish and other food sources such as in Bengkulu. Villagers are also not impeded from sourcing for jungle produce in and around our managed areas. Any access through our operational areas are allowed at any time for villagers seeking jungle produce or access to their smallholdings.
Repairing a Village Road Near PT MPM
Periodic Contribution for Surrounding Communities
