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R.E.A Holdings PLC

Since 2007, Indonesian regulations have required companies who acquire new land for oil palm development to facilitate the establishment of plasma smallholder schemes for the benefit of the surrounding community.  The area of oil palm developed under such schemes must be no less than 20% of the area developed for the benefit of the company.  

In contrast to the PPMD schemes, the start-up costs for the plasma schemes established to date have been financed by loans to the cooperative from REAK or local development banks.  A further difference is that members of the cooperative are not involved in managing the land cultivated with oil palm.  Instead this is done by REA, in return for a pre-agreed management fee.

As at 31 December 2014, there were 19 plasma cooperatives associated with the group’s operations, each at various stages of development. As at 31 December 2014, 3,130 hectares of oil palm had been planted under REA’s plasma scheme, of which 1,865 households are beneficiaries. Two of the longest established plasma cooperatives (REAK1 and REAK2), which own 1,914 hectares of oil palm, obtained RSPO certification in June 2011.

Progress in establishing REA's plasma schemes (as at 31 December 2014)