
About
Langkat is a regency located in North Sumatra Province, Indonesia. It borders the Aceh Province to the northwest and is known for its rich natural resources, including tropical forests, rivers, and plantations. The area is home to parts of Gunung Leuser National Park, a UNESCO-recognized ecosystem that supports rare wildlife like orangutans. The local economy is primarily driven by agriculture, palm oil plantations, and forestry. The productivity of Fresh Fruit Bunches (FFB) in several sub-districts of Langkat remains below the national average. In Bahorok and Kutambaru, for instance, yields are only 4.2 tons/ha/year and 4.03 tons/ha/year, respectively (Langkat Regency in Figures 2021), compared to the average of 18.27 tons/ha/year for smallholders in North Sumatra (North Sumatra Province in Figures 2021). This low productivity is also linked to the management practices of smallholders. This is largely due to limited knowledge, poor farm management, and lack of access to quality inputs. Low productivity not only affects smallholders' income but also hinders their ability to meet sustainability standards required in the global palm oil supply chain. To enable meaningful inclusion, smallholders need targeted capacity building to improve productivity and align with market expectations.
The North Sumatra Supply Chain Project is located in Langkat Regency. It is a project that supports Langkat landscape, and is not a full landscape initiative. IDH in collaboration with GAR (PT SMART) launched a capacity-building program in 2022 to support the independent smallholders in Langkat, for achieving sustainable palm oil production. The program focuses on enhancing knowledge and management practices related to Good Agricultural Practices (GAP), Best Management Practices (BMP), good governance, and sustainability standards. By 2023, the program had reached out to 2,620 smallholders (657 women and 1,963 men) and facilitated the establishment and readiness of five farmer groups for sustainable certification.
In 2024, Mondelez joined as a co-funder, enabling the program to add it coverage to 300 smallholders and develop a partnership with a local mill, a supplier of GAR, to identify and support the capacity building of their independent smallholders supplier. As part of the North Sumatra Supply Chain Project, the Langkat landscape support activities were implemented across several sub-districts in Langkat, including Babalan, Bahorok, Berandan Barat, Besitang, Gebang, Hinai, Kuala, Kutambaru, Pangkalan Susu, Salapian, Sawit Seberang, Sei Bingai, Sei Lepan, Stabat, Sirapit, and Tanjung Pura.