Financial Access, Bank Sumut, Livelihoods Funds (L3F) and Musim Mas Sign MoU to Strengthen Collaboration in Oil Palm Smallholder Finance in Indonesia
3 February 2023
MEDAN, JANUARY 30, 2023 – A Memorandum of Understanding (MoU) was signed by Bank Sumut, Livelihoods Funds (L3F), Financial Access Consulting Services (FACS) and Musim Mas today to for the creation of a smallholder replanting finance and support program.
The program is linked to the Biodiverse and Inclusive Palm Oil Supply Chain Program, which aims to empower independent smallholder farmers to improve sustainable oil palm farming and agroforestry in North Sumatra. The program is led by L3F in partnership with sustainable palm oil producer Musim Mas, Mars, Danone, L’Oréal, SNV, FACS and the World Agroforestry Centre (ICRAF).
With this financing and technical assistance initiative FACS, in partnership with its fintech affiliate PT Kreditek Financial Access (KFA), will support Bank Sumut with the required knowledge, skills and digital tools to be optimally prepared and equipped to originate, process and disburse individual loans to independent oil palm farmers at lower cost and risk. Through this initiative the aim is to enable formal financial inclusion of tens of thousands of RSPO-certified oil palm smallholder farmers across Indonesia over the coming years in a scalable manner.