Semiannual Report: AID-497-A-16-00001

The project aims to promote sustainable palm oil production in Indonesia. In the first six months of implementation, the ASLI team has made significant progress, despite encountering challenges due to the dissolution of the Indonesian Palm Oil Pledge (IPOP). ASLI has focused on various activities, including project start-up, recruitment and on-boarding of project staff, meetings with key stakeholders, and development of the first year implementation plan and monitoring and evaluation plan. The team has also revised the project description and project design, due to the dissolution of IPOP, and initiated agreements with partners Serikat Petani Kelapa Sawit (SPKS) and Rainforest Alliance (RA). The ASLI team has engaged in coordination meetings with the Government of Indonesia (GOI) and other stakeholders, including the Directorate General of Ministry of Environment and Forestry (MoEF) and Konservasi Sumber Daya Alam dan Ekosistem (KSDAE). The team has also collaborated with other national civil society organizations (CSOs) through the Sahabat Petani Sawit (SPS) meetings, including PSL, Institut Penelitian Inovasi Bumi (INOBU), World Resource Institute (WRI), WWF, and Center for International Forestry Research (CIFOR). Under Outcome One, the ASLI team will support PSL with objective analysis to increase governing capacity and enhance the regulatory environment for palm oil agribusiness. The team has conducted a series of focus group discussions (FGDs) with smallholder farmers and other stakeholders to gather information on the current situation of smallholder palm oil production in Indonesia. The analysis will provide recommendations for policy and regulatory reforms to support sustainable palm oil production. The ASLI team has also made progress on Outcome Two, which aims to define and assess the sustainability-related characteristics of smallholder palm oil producers. The team has conducted a survey of smallholder farmers to gather information on their current practices and challenges. The analysis will provide recommendations for improving the sustainability of smallholder palm oil production. In addition, the ASLI team has made progress on Outcome Three, which aims to develop a framework for monitoring and reporting progress towards zero deforestation efforts. The team has conducted a series of meetings with stakeholders, including the GOI and CSOs, to gather information on the current situation of deforestation in Indonesia. The framework will provide recommendations for monitoring and reporting progress towards zero deforestation efforts. The ASLI team has also initiated the development of a national online monitoring system on palm oil smallholders, in collaboration with other national CSOs. The system will improve performance and contribute to good governance of the land in the sector. The team has also initiated agreements with subawardees, including Rainforest Alliance and SPKS, to support the implementation of the project. Overall, the ASLI team has made significant progress in the first six months of implementation, despite encountering challenges due to the dissolution of IPOP. The team has engaged in various activities, including coordination meetings with the GOI and other stakeholders, and has made progress on the project's outcomes and activities.